Memorable sections from Casey Handmer on Dwarkesh

Casey Handmer on Energy, Solar, and the Future of Civilization

Dwarkesh Patel podcast

On this episode, Casey Handmer (Caltech PhD, former NASA JPL, founder & CEO of Terraform Industries) walks me through how we can pull it off, and why he thinks a major part of this energy singularity will be powered by solar. His views are contrarian, but he came armed to defend them.

These are a few sections that stood out to me:

The fundamental energy transformation process

All conventional power generation follows the same path: find something in the earth that’s out of chemical equilibrium with the atmosphere, burn it to make heat, boil water, run it through a mechanical contrivance to create motion, twist a magnet to generate an electrical field, push electrons through wires, and ultimately approximate thinking through computational gates.

The key bottleneck is converting heat into electricity efficiently. Whether nuclear, gas, combined cycle, or coal plants, they all use the Brayton cycle – the same thermodynamic process that powers jet engines. Any Brayton cycle with Inconel spinning at high speed costs serious money.

Why China’s 20x solar manufacturing advantage isn’t determinative

China faces fundamental vulnerabilities: surrounded by hostile neighbors, dependent on Middle East oil via undefended shipping routes. The US has superior automation, financial capacity, and business environment. Solar manufacturing could be rapidly scaled domestically within 2-3 years if treated as a national priority.

Solar’s relentless learning curve

Solar has a 43% Wright’s Law coefficient – every time cumulative production doubles, costs drop 43%. Not only are adoption, production, and price decreases continuing, they’re accelerating. And the rate of acceleration itself is accelerating.

Why hyperscalers currently choose gas

Two reasons: they need immediate deployment (everything before 2030 is already spoken for), and they’re power availability sensitive rather than power cost sensitive.

The scale of solar infrastructure needed

For 5 gigawatts of AI capacity: 50,000 acres. This sounds massive but is comparable to Manhattan Project sites (Oak Ridge: 60,000 acres, Hanford: 100,000 acres). Technical specs: 10 acres per megawatt at four nines uptime, including solar overbuilding for reliability.

Batteries as grid replacement

Batteries do the same job as the grid – the grid transports power spatially, batteries transport power temporally. The grid suffers from Baumol cost disease while battery utilization runs much higher, making distributed battery systems more economical.

Environmental regulations as the binding constraint

Environmental regulations actively prevent renewable deployment in the US. This is why Texas is winning – out deploying California 10 to 1. NEPA reviews take 4+ years and generate more environmental impact than the solar projects themselves.

GDP becomes misleading in an AI economy

GDP will see massive deflation because the variable cost of running AI will be cheap compared to paying human wages. In the long run, it makes more sense to measure civilization’s size by raw energy use rather than GDP.

The ultimate vision: silicon consciousness

One human brain can be simulated in roughly a square meter of silicon floating in space. Integrated solar-computation wafers can fly as solar sails, adjust orientation with LCD panels, and operate indefinitely in space.

We’re seeing the beginning stages of a collapse back towards the simplest possible thermodynamic-to-cognition stack. The most efficient way to convert energy into usable cognition is silicon.

Timeline predictions

  • 2027: Majority of new data centers breaking ground will be mostly solar-powered
  • 2030s: Multiple 5-10 gigawatt AI facilities operational
  • Long-term: Transition from current complex industrial economy to simplified silicon-based energy-to-cognition conversion

The overarching thesis: we’re approaching an “energy singularity” where solar becomes so cheap and abundant that it fundamentally reshapes both AI development and human civilization itself.

 

Transcript of Kevin Muir on Intentional Investor

Matt Zeigler interviewed Kevin Muir. The interview is 5 stars so I am memorializing the transcript so I can easily refer back to it.

Watch the Full Interview: Kevin Muir – The Intentional Investor

My top highlights

  • Analysis of Monopoly Properties
    Kris: I remember discussing exactly this topic in a SIG interview. When you come out of jail, the most likely properties you land on are the tan ones.
  • “Why Can’t You Just Enjoy Things?”
    His wife’s question (paired with a great Scrabble story) underscores a key lesson: Do your best, work hard, but eventually just throw it out there and see what happens—then move on to the next one. This is reinforced by his unpredictable success with writing.
  • Getting His First Job and His Dad’s Advice
  • The Luck of Being a Computer-and-Markets Guy
    Reminds me of Marc Andreessen’s advice about how if you are 90th percentile in each of 2 domains, you are 99th in join probability space (.1 * .1). But Kevin’s story also shows the importance of luck—his joint skills perfectly matched a short window in time before specialization took over technology.
  • The Pickoff Story: Honor, Ethics, and Reputation

Then these 3 parts which I bring special attention to:

  • Leaving Corporate Life
  • Romanticizing the Past
  • The Secondary Effect: Norwegian Art Story

Leaving Corporate Life

The emphasis is mine. 🔥

Anyway, we have our first kid when I’m 29. I’d been at RBC for six years or so. At that point, the bank was slowly overtaking the dealer. It started as an entrepreneurial place, but over time, the bank got more involved. Rightfully so—I look back at some of the stuff we were doing, and I’m like, “I’d never let some 27-year-old punk do this.” It was irresponsible. We made tons of money, and it was fun, but I wasn’t mature enough to realize that was a unique time, not how life always works.

The bank starts creeping in, telling me, “You can’t trade this, you can’t trade that.” I’m getting in trouble—“Kev, you can’t do this.” Then we have our daughter. She’s born with a heart defect, corrected at birth, but it was a very emotional time for me. It was like a near-death experience—not that I died, but it hit me hard. I never felt the same way about work after that. A couple of other things made it less fun too. Three months after she’s born, we have our best quarter ever, and I think, “I’m going to be like Michael Jordan—sink the basket and walk away.” So I quit.

At the time, I didn’t know what I’d do next. I hadn’t made enough to never work again, but enough to not worry about the next year. I thought, “I could work for a hedge fund, but I don’t want to do sell-side again for a while.” If I worked at a hedge fund for a year and quit, people would remember me as the schmuck who lasted a year. But if I tried something on my own for a year and then went to a hedge fund, no one would care about that year. So I started trading for myself. Eventually, another guy from my old shop joined me, and that was it. Along the way, I started writing the letter and doing the podcast.

One thing I laugh about—I’ve never really had a steady paycheck. Even at RBC, it was a small draw, and it’s been “eat what you kill” for the last 35 years.


Romanticizing the Past

Interviewer: People romanticize the past, thinking it was easy to make money.
Kevin: Exactly.

“I tell people my story, and I always say, ‘Oh, I would have made so much money back then; it was so easy.’ And everyone always thinks it was so easy. But I always tell them, ‘Listen, it wasn’t easy.’ Right now, there’s somebody who is quietly making a fortune, someone who has figured out the equivalent of my interlisted arbitrage. When I was doing my interlisted arbitrage on my machine, I wasn’t telling everyone—I was quiet about it. There’s somebody somewhere doing the exact same thing.

“There are always people making money, and it’s always hard. I remember thinking specifically, when I would listen to their stories—like the trader above me, 5 or 10 years older than me—I’d think, ‘If I had just been there when 87 happened, if I had just been there then…’ People always look back on the past, over-romanticizing it.”

[Kris: If I had a dollar for every time I’ve  heard someone think this about floor trading…The attrition rate of floor traders was insane. Another new face? Give him a month and we’ll see  if he’s around. Also, if I had a dollar  for every time I said this about someone before me! We project our current tools onto the past. I wont’ re-hash it because Nick Maggiulli does a great job on this topic. See The Privilege of Knowledge.]


The Secondary Effect: Norwegian Art Story

Interviewer: Tell the Norwegian art story—it relates to this.
Kevin:

I’ll quickly go through it. For those who don’t know, in the late ’60s and early ’70s, I believe, Norway discovered oil off their coast. It was this huge boom, and everyone was rushing out to get blocks of water they could drill in. There was an enormous fortune to be made with this Norwegian offshore oil boom. For those who don’t know, we think of Norway as a very rich country now, but up until that point, it wasn’t. It was actually the poorer of the Scandinavian countries, mostly reliant on fishing—not a lot was going on in Norway. So, they discovered this oil, and the long and short of it is that all these guys were rushing out to buy pieces of this water to drill in.

Then there’s this trader who looks at the situation and says, ‘Okay, that’s getting fully priced in. What can I do?’ He decides to start accumulating Norwegian art. He just starts buying all this art, and you might think, ‘What kind of crazy guy is this? Why is he buying Norwegian art?’ The long and short of it is that he had figured out that once all these guys made their fortune from the offshore oil, they’d be looking for something to do with their money. Art is a very local market, and when a Norwegian guy makes some money, yes, he might go buy a Picasso, but he’s also suddenly going to want Norwegian art. So, while everyone was busy fighting and paying too much for this offshore oil, this guy was quietly accumulating Norwegian art. A year or two later, when all these newly rich guys started looking to spend their money, he was there with offerings for them and made a fortune that way.

To me, that epitomizes trading. What’s interesting is if you go back and read Liar’s Poker again, you’ll see Michael Lewis talks about two guys who were his mentors. One of them is this guy, Dash Riprock, I think, who sits around watching for a bond to be, say, 30 seconds too expensive, and then he arbitrages it. He’s kind of a block-and-tackle kind of guy—just straightforward. But then there’s this other guy, this big, bold trader. If you reread that section, Lewis describes how, when something happens, this trader is already onto the next iteration, trying to figure out, ‘Okay, this is occurring—what’s the next step?’ Instead of just focusing on the first derivative, he goes for the second derivative. In other words, he thinks, ‘Once everyone does this, what’s that going to mean for the next thing?’ It’s like thinking multiple moves ahead in chess.

[Kris: The character in Liar’s Poker is named Alexander. This is an example of Alex’s second-derivative thinking, which I refer to in Trading Is A Team Sport:

The second pattern to Alexander’s thought was that in the event of a major dislocation, such as a stock market crash, a natural disaster, the breakdown of OPEC’s production agreements, he would look away from the initial focus of investor interest and seek secondary and tertiary effects.

Remember Chernobyl? When news broke that the Soviet nuclear reactor had exploded, Alexander called. Only minutes before, confirmation of the disaster had blipped across our Quotron machines, yet Alexander had already bought the equivalent of two supertankers of crude oil. The focus of investor attention was on the New York Stock Exchange, he said. In particular it was on any company involved in nuclear power. The stocks of those companies were plummeting. Never mind that, he said. He had just purchased, on behalf of his clients, oil futures. Instantly in his mind less supply of nuclear power equaled more demand for oil, and he was right. His investors made a large killing. Mine made a small killing. Minutes after I had persuaded a few clients to buy some oil, Alexander called back.

“Buy potatoes,” he said. “Gotta hop.” Then he hung up. Of course. A cloud of fallout would threaten European food and water supplies, including the potato crop, placing a premium on uncontaminated American substitutes. Perhaps a few folks other than potato farmers think of the price of potatoes in America minutes after the explosion of a nuclear reactor in Russian, but I have never met them.

But Chernobyl and oil are a comparatively straightforward example. There was a game we played called What if? All sorts of complications can be introduced into What if? Imagine, for example, you are an institutional investor managing several billion dollars. What if there is a massive earthquake in Tokyo? Tokyo is reduced to rubble. Investors in Japan panic. They are selling yen and trying to get their money out of the Japanese stock market. What do you do?

Well, along the lines of pattern number one, what Alexander would do is put money into Japan on the assumption that since everyone was trying to get out, there must be some bargains. He would buy precisely those securities in Japan that appeared the least desirable to others. First, the stocks of Japanese insurance companies. The world would probably assume that ordinary insurance companies had a great deal of exposure…]


Transcript

Intro

Kevin Muir, author of the Macro Tourist newsletter and a seasoned trader, joins The Intentional Investor for a fascinating conversation that weaves together trading, life lessons, and Canadian culture. From his early days mastering Monopoly statistics to pioneering computer-driven trading strategies at RBC in the 1990s, Kevin shares candid stories about finding his path in finance.

Kevin discusses growing up as the older brother of a professional hockey player, his journey from discount brokerage manager to institutional trading desk, and how becoming a father changed his perspective on risk and career. He offers unique insights into market psychology, friendship, and the importance of finding work you genuinely love.

Highlights include:

How Kevin combined computer skills with trading intuition to capitalize on market inefficiencies The story behind his decision to leave a successful banking career to trade independently His experience growing up in a family of traders and athletes Reflections on Canadian culture and the historic final Tragically Hip concert Wisdom on maintaining long-term friendships and finding your authentic path in finance

Whether you’re interested in markets, mentorship, or memorable stories from the trading floor, this conversation offers valuable perspectives on building a meaningful career while staying true to yourself.

Guest Introduction: Kevin Muir, The Macro Tourist

Matt Zeigler:

“Now in most cultures, the tourist is a thing to be mocked—the bad shirts, the bad taste in food, the cameras around the necks—and if you’re a local, the tourists are the people who are always in the way. And if you’re a trader, well, they’re the ones who are trying to give you a bad name. But this guest has made a career out of tourism, by which I mean he’s exploring areas that others might not, turning over all the rocks that are there in the name of finding opportunities. He’s a veritable Ferdinand Magellan of who’s buying and selling, a Christopher Columbus willing to back up his portfolio’s dump truck, a Marco Polo of the occasional crapco YOLO, the Jacques Cousteau of commitments of traders and fund flows, and the Amelia Earhart of the occasional gas gauge chart. Is that too soon? Mil, you can make jokes about her, right? He’s the master in the Market Huddle universe, a real He-Man, which maybe makes Patrick O’Shaughnessy Man-at-Arms—we’re going to have to ask him that question on another episode. The ‘everything is interesting’ purist, author of The Macro Tourist himself, promising a conversation that will not be the maturest. And no, I will not play him in ‘Birds for the Bill,’ at least not this time. Bring home the Canadian—let’s bring home the Canadian bacon with me now, the one and only Mr. Kevin Muir. Kev, man, listen, that was the best intro I have ever gotten.”

Kevin Muir:

“Like, nobody will ever be able to top that. As a person who regularly does fantastic intros on Market Huddle, let me say I’m taking the praise. I’m taking—I know that is awesome.”


The Story Behind “The Macro Tourist” Name

Matt Zeigler:

“And you know, you brought up the fact that the tourist is something that’s kind of viewed with a derogatory nature.”

Kevin Muir:

“And I remember when I first chose the name when I was writing my post, and people used to come to me and say, ‘You know, Macro Tourist, that’s actually like a bad thing, you know, like that’s an insult.’ And it’s like, ‘Yeah, of course I get it.’ It’s kind of a self-terror, like I’m making fun of myself, and that was the whole thing about it. And uh, and I laugh, and it just goes along with my um, my kind of motto, which is, ‘All I bring to the party is 25 years of mistakes.’ Now I have to update this because I started that a while ago.”

Matt Zeigler:

“It’s better if you don’t update the 25 years. I saw that and I went, ‘I think when I signed up for these newsletters 10 years ago—’”

Kevin Muir:

“Yeah, he was—you’re absolutely right.”

Matt Zeigler:

“No, but I’m still making mistakes, so that is the one thing I can assure you of.”

Kevin Muir:

“Well, may your 25 years be evergreen.”


FMK Game: Canadian Bands

Matt Zeigler:

“I’m starting here—I’m starting with a game, okay? I don’t know if this—I assume this game migrated to Canada at some point, or at least maybe your kids played it. Well, you don’t want to talk about this one with your kids. I’m going to use the PG-13 rating, which is FMK, or as my friend Raj Bennett likes to say, ‘make sweet love to, marry, kill.’ So have you ever played this game?”

Kevin Muir:

“Uh, make swe—choose one of those?”

Matt Zeigler:

“Well, you’re going to rank them on which one you’d make sweet love to, which one you’d marry, which one you’d kill.”

Kevin Muir:

“Oh, okay, let’s uh, let’s give this a whirl. So we’re gonna give this a whirl, okay? Make sweet love to, marry, kill: Rush, The Tragically Hip, and Bachman-Turner Overdrive. Okay, so I—I’m gonna be—I could be kicked out of Canada for this, but I’m not a Rush fan. And I know that like a lot of people—so I’m gonna put Rush in the kill. So then I’m stuck with—oh, and that’s easy because um, like, Tragically Hip is the greatest band that’s ever come out of Canada, so they’re going to be ‘make sweet love.’ And then I guess I have to marry BTO. I mean, which is kind of annoying because he is um, he—he’s like, he’s a lovely human, and he actually has a radio show that he does, really, on CBC.”

Matt Zeigler:

“Yeah, he has a radio show, and he—and it’s actually terrific to listen to ‘cause he’s really old, and so he’ll talk about like meeting the Beatles and then he’ll play little bits of the songs and stuff. So it’s a great—it’s a great show.”

Kevin Muir:

“But he is definitely um—I think he was kicked out of The Guess Who for being a little too Puritan. And uh, for those who don’t know, um, is it Bachman—I guess that’s his last name, I can’t remember his first name—but he was originally part of The Guess Who. And ironically enough, I was actually—I grew up in Winnipeg, and The Guess Who were from Winnipeg. And I remember—remember hearing my dad’s uh, friends tell stories about like these crazy parties they had and what The Guess Who guys did and like, ‘Oh, we trashed this house,’ and blah blah blah. It was some great kind of Winnipeg Guess Who stories.”

Matt Zeigler:

“And last Guess Who story—I, because I love telling this um, when they asked uh, who was it, uh, who’s the lead singer for um, the uh, Led Zeppelin? Is it Plant?”

Kevin Muir:

“Robert Plant.”

Matt Zeigler:

“Robert Plant, yeah. So they asked—they said, ‘Robert Plant, you have a terrific rock ‘n’ roll voice, you know, like it obviously does—one of the greatest singers of all time. But if you had to pick someone that you would want to sound like, like who would you pick?’ And he chose Burton Cummings from The Guess Who.”

Kevin Muir:

“That’s amazing.”

Matt Zeigler:

“Yeah, kind of interesting pick.”

Kevin Muir:

“There’s all those things because it’s one of those—there’s uh, you know, growing up on this side of the border in America, the weird things that get passed back and forth between our countries. Yeah, all trade commentary aside, like I’m in a trailer park in New Jersey on family vacations—you know, a condo, but it was a trailer park—and like the Canadian kids sliding me The Tragically Hip stuff, like mid-90s, around the side, and just being like, ‘This is amazing,’ and then nobody else caring.”

Matt Zeigler:

“Yeah, you know, they tried to make it big in the States. They got on Saturday Night Live, right? And live appearance. And you know what the problem was? If you go and you watch the documentary—there’s a great documentary for those converted. My wife—full fan now, thank you for that documentary.”

Kevin Muir:

“Well um, and for those who don’t know, The Tragically Hip are like a Canadian band that at their peak could have come to Toronto and sell out the Maple Leaf Gardens for like two weeks straight and yet would go to New York and have to play like a little 5,000-square—I mean a 5,000-person venue—because they couldn’t sell out the big arena. And not only that, all 5,000 were mostly Canadians that were living in New York, the ex-shows up.”

Matt Zeigler:

“And the—and the kind of crazy story about this is that the lead singer got diagnosed with this brain cancer, and instead of just kind of quietly going off and dealing with it, he announced it to the world and said about doing this one last tour in this one last concert. And listen, he didn’t—he could barely keep the lyrics straight. They had to put like uh, uh, the—in front of him through a prompter and stuff. So it was—it was just emotionally hard, you know, felt.”

Kevin Muir:

“And the last show, because they were from this place in Ontario called Kingston, the last show from Kingston was just broadcast throughout Canada. And I can tell you, there’s like—I can remember the periods, like points at which Canada shut down, like where there’d be nobody on the highway. And it was like, generally, like um, Olympic hockey games—like we had a big one against you guys where uh, Sidney Crosby scored the winner, and that was—I remember coming in, like the highways were empty, and we had to pull over to go watch the game. And this was another one where just the whole country stopped to watch this last concert from The Tragically Hip.”

Matt Zeigler:

“Where were you? Where did you watch?”

Kevin Muir:

“I watched it at the cottage. So I was uh, and a lot of people were kind of uh, in cottage country and doing it there. And I should have gone somewhere, and you know, I was tempted to go, but it was just so expensive that—to actually go to the concerts, it was—it was crazy. It’d be like if uh, you know, you got to go to the last taping of MASH or something, like—I don’t even know, like the Super Bowl.”

Matt Zeigler:

“When I—when I tell people, I would say it’s our Bruce Springsteen. So it’s a band, but it would be the same, like imagine G Downey—if he was still alive—would have a Bruce Springsteen level. Hopefully not the same plasticky face thing going on, but—well, New Jersey adjacent.”

Kevin Muir:

“Yeah, and well, I’m very happy to hear that you were a fan. And what—what was your favorite album or song?”

Matt Zeigler:

“So uh, I ended up with a soft spot for Road Apples.”

Kevin Muir:

“Oh yeah.”

Matt Zeigler:

“And like really getting into that, and then I’m trying to think—it was—I don’t know if I made a note of it—the one—it was the one that came in Henhouse, what came out in ‘9—”

Kevin Muir:

Trouble at the Henhouse.”

Matt Zeigler:

Trouble at the Henhouse was like the first—I had that one and the album before it were like the tape that the Canadian friends made to me.”

Kevin Muir:

“Okay.”

Matt Zeigler:

“And that was like two summers, and then I remember being like, ‘Oh,’ ‘cause it was in uh, ‘Breen’—one of the songs was in Brain Candy too, the Kids in the Hall movie.”

Kevin Muir:

“Oh, really? I—I felt like really cool that I got the—do you know what ‘road apple’ is, by the way?”

Matt Zeigler:

“Uh, I found out, thank you to the documentary, yes, finally. I never knew until—”

Kevin Muir:

“Yeah, so, and the funny part about that story is that um, they—The Tragically Hip had chosen this name for their album, and the American record company said, ‘That sounds way too Canadian, like it was like that’s just terrible name.’ And so they were like, ‘You know, F you,’ and they decided to, you know, go, ‘What about Road Apples?’ They thought there’s no way they’re going to accept Road Apples because, for those who don’t know, road apples are basically horse crap, like that’s on the side of the road. And they loved it, and they went with it. So it’s how very Canadian that one of the best albums of all time is named after horse manure.”

Matt Zeigler:

“It’s a beautiful—did they try to name an album that first and then like it got shot down, and then they brought it back down again?”

Kevin Muir:

“I thought it was the other way around. I thought they wanted to name it something, and then it was kind of their, you know—they had—I could be misr—everyone should watch the four-part documentary. I think it’s even better if you know nothing about them, meaning like—meaning I’m sure if you grew up on them, it’s extra exceptional, but if you know nothing about them, you will come out of it wanting to work your way through the entire catalog because it’s so beautiful.”

Matt Zeigler:

“Yeah, I can’t remember—it just felt like that was like that was one in their back pocket that when they called him on not being able to do the other, they were like, ‘How about this?’”

Kevin Muir:

“Right, waiting for this—they’d been waiting to call it Road Apples. It’s the joke with your friends that you’ve like, you’ve been saying for years, and now you’re like, ‘All right, let’s play the card.’”


Growing Up: Family and Early Interests

Matt Zeigler:

“Well, speaking of playing cards, take me all the way back. Mom and Dad—I’m just curious about both of them, what they did, and in particular, like, was Dad seriously trading—Vancouver penny stocks, is that right?”

Kevin Muir:

“You’re absolutely correct. So I grew up in a household um, as I mentioned, I’m from Winnipeg, and there was a company in Winnipeg called Richardson Greenshields, and the Richardson family are one of Canada’s kind of wealthy families, and they’d started the securities arm. And then my dad and mom were actually from Montreal, so they moved out to Winnipeg. My dad decided he was going to be a research analyst, and he eventually ended up being the research director, so that’s like the guy that has all the analysts working below him. Um, but I grew up listening to stories about all these crappy stocks that are just like—just—and for those who don’t know, like Toronto, and more so Vancouver back in the day, had all of these just promotional-type crazy um, mining speculations. And it’s—it’s subsequently no longer there, like because we haven’t had a real kind of resource bull market in a while, but just imagine kind of all your worst SPAC-type, you know, situations, like 2021, but for resources. And that’s what kind of crap that was going on. And I—I promised myself, I was like, ‘I don’t want to trade these things. This is not what—like I love trading.’ And I was always—I was always loving games. My dad laughs at me because he says, ‘I always knew you were going to be a trader because he says, like, you love games.’ Like, you know, even as a little boy, I’d bring them up Monopoly and play—I wanted to play Monopoly, I wanted to play this, whatever it was.”

Growing Up Studying Monopoly Statistics and Game Theory

Kevin Muir:

“And I remember my mom bought me this magazine that was uh, a science magazine, and in it, they had studied the different odds of uh, like the—the return profiles of all the different Monopoly properties.”

Matt Zeigler:

“Oh yeah.”

Kevin Muir:

“And then figured out like, you know, where it is. And so I—I remember I was like 10 or 11—I became obsessed with this because I realized, you know, ‘Oh no, New York, St. James, and all those—there’s such better value because of the—the minus-three card that puts you on them.’ And anyway, so I—I—I studied this, and it was always—my—my old man just laughs. He says, ‘I knew you were going to be a trader.’ Was like, ‘There was nothing else that you were going to do. It was always something you wanted to do, you studying the—the Monopoly table in the back of a magazine.’”

Matt Zeigler:

“Like, but that’s how you’re supposed to learn statistics and stuff, right?”

Kevin Muir:

“I loved it. It was just—this was an eye-opening, you know, experience for me. And then, you know, I went through my stage where I figured out counting cards, and then I was like, you know, flying out to—to um, Atlantic City overnight to—to try my hand as a card counter, which, you know, as I know now, it’s never going to work because the reality is your edge is so small, and you got to do it for so long, and uh, you know, it just ends up being a pain. But I—I had that stage. I had my horse-racing stage where I was like, you know, going to the horses to play the ponies.”

Matt Zeigler:

“Yeah, I got the systems in place and did like this.”

Kevin Muir:

“The only thing I didn’t ever do—and I kind of regret it now—is I never got into the poker because poker has a little—too old for it, and it came after me.”

Matt Zeigler:

“You missed the online poker window.”

Kevin Muir:

“Yeah, like I was already trading, and then once I figured out trading and—and did it, like I’m always kind of shocked at guys in our industry that are actually taking a risk that then want to go to like Las Vegas or wherever and gamble. And I’m like, ‘Why—why would you play that game?’”

Matt Zeigler:

“Yeah, well, first of all, the odds are terrible, but like, don’t you get enough? Like, isn’t there enough stimulus? Like, I don’t really get it. But like poker, at least I understand because there’s a little more mental parts of it, but like a lot of the just going and counting cards is—it’s—once you figure out the system, it’s just methodical and boring.”

Kevin Muir:

“All right, games—like top games besides—besides Monopoly and the stats—what are—what’s the board games in the house? What are the ones where you’re like, ‘I want to pull this off on family game night’?”

Matt Zeigler:

“Um, um, well, do you know—actually, I—we—I don’t play as—just like my gambling, when trading took over, I don’t play as many games.”

Kevin Muir:

“No, no, no, but back then—back then as a kid.”

Matt Zeigler:

“Oh, back then, um—but—but—but just as quick aside, my wife and I play uh, this game called Quirk. I don’t know if you know it. It’s like—it’s—you got to make like patterns, and it’s—it’s actually a terrific game, and my wife is better at it than me in some ways.”

Kevin Muir:

“Is it shapes or numbers or something?”

Matt Zeigler:

“Yeah, it’s shapes and colors, and then you make these different kind of things, and yeah, um, but my wife—I—I always laugh at because she’s—she’s very good at doing things with uh, letters and words. So when one day when we started playing Scrabble—like, we went out and played Scrabble—and uh, I’m terrible at words, like in terms of trying to figure out how to do this, I’m like, just doesn’t come to me. And she’s coming up with these great words, but I’m looking at the board, and I’m figuring out like, ‘Okay, I can block her here, I could do this,’ and I’m just applying like complete game strategy, like I’m not even thinking about the words, I am only, you know, blocking, tackling, and like just trying to do. And like, she looks at me, and she says, ‘You’re—you’re just playing to win.’ And I’m like, ‘What?’ Like, she’s like, ‘That’s—’ She was legitimately offended that I wasn’t trying to make the best words and that I was just playing to win.”

Kevin Muir:

“And then she said, ‘Well—’ She started to figure it out, and then—and then I never won again in Scrabble because she’s so good at it. But she was really upset that I was just using game theory. Um, in terms of going back then, Monopoly was my top game. Uh, eventually, I became a little bit of a Dungeons and Dragons geek, of course, like, you know, um, uh, what else did I like? Oh, then I went to university, and I figured out bridge and uh, Hearts. I started with Hearts, moved to Bridge, and uh, that was a big game for me for a while.”

Matt Zeigler:

“Dungeons and Dragons with the friends, like uh, quasi-Stranger Things going on in the neighborhood. What do we got here?”

Kevin Muir:

“I don’t even remember. I—I—I just remember buying all the books and just being fascinated by it and like having the—the different, you know, numbers, the 20-sided dice, and like—I—I can’t even remember what it was about, like it just seemed really cool at the time. That’s—you know, I was—I was—I was late maturing, meaning like I was like—everyone else was into girls, and I was still thinking about Dungeons and Dragons.”

Matt Zeigler:

“Okay, but then who—late maturing, yet learning to play bridge? Well, who was teaching you? You were fast-forward maturing in one category and late maturing in the other.”

Kevin Muir:

“You got it. I was like—I was just late. I was like—I was really, really short, like in—I can’t remember—I was 16. I learned in Winnipeg, you could learn to drive at 15 and a half, and I remember I was like—I think I was barely 5 feet tall and 16 or something, like I was really late. And one of my dad’s friends said, ‘I thought you had to be 12 to drive.’ That’s how young I looked.”

Matt Zeigler:

“This is great. You late maturing and early maturing—”

Kevin Muir:

“Yeah, at the same time is uh, is pretty funny.”

Siblings and Family Dynamics

Matt Zeigler:

“Okay, so the games are a big part of it. Now, is it just you—you got siblings, like who else is in the house with you?”

Kevin Muir:

“I actually have a younger brother and a younger sister.”

Matt Zeigler:

“Okay, oldest of three. We can go behind that. Uh, like big age gap, real deep?”

Kevin Muir:

“My brother’s three, and my sister’s eight.”

The Dog Story: Thumper’s Vacation Weight Gain

Matt Zeigler:

“Now I’m totally putting you on the spot with this one because I think I’ve been butchering this story from you for a while, okay? Uh, you guys had a dog growing up, or you had multiple dogs growing up?”

Kevin Muir:

“Yeah, we had different dogs, yeah.”

Matt Zeigler:

“You have some story—and I couldn’t find this in my notes, so maybe I have to edit this out—kinda scared that you got notes about all this.”

Kevin Muir:

“Oh yeah, I—notes about the important stuff, like this story.”

Matt Zeigler:

“Okay, which I feel like—I think this came from you, so you see if I’m wrong. Did you go on vacation and uh, the dog got like sent to be boarded somewhere, and the—the quality of the food—”

Kevin Muir:

“Oh yes, that is my story.”

Matt Zeigler:

“Is that your story? I’ve been telling the story—I’m shocked that you remember the story.”

Kevin Muir:

“I don’t remember it left such an impression. Please tell the story.”

Matt Zeigler:

“Well, you know, because I—I—I tell a lot of stories more than once. This is not one of those ones that I tell all the time, so this is a deep-cut catalog story. Um, yeah, so we had a Rottweiler growing up—very like good-natured Rottweiler. My dad traveled a lot, so he bought my—my mom this um, you know, big tough dog, but he was just the gentle soul. And he was tall—he wasn’t one of those, you know, short, squat ones. He was one of those tall Rottweilers.”

Kevin Muir:

“So, and he was—10 or 120 pounds, like he was a big muscle too.”

Matt Zeigler:

“Yeah, and it was just—that’s a scary—but he was the sweetest guy.”

Kevin Muir:

“Anyway, so my dad would buy cheap food and then just like leave it out for him, and he would eat whatever he wanted. And then we went on—I think we went on this vacation for like two weeks or a month, and uh, he asked—we boarded him, and the guy says, ‘Well, what do you do?’ And my dad says, ‘You—he just, you know, he self-feeds.’ And the guy’s like, ‘Okay.’ The trouble was that the guy gave him good food. And so this dog—Thumper, by the way, was his name—you know, we come back, and Thumper is like 25 pounds bigger ‘cause he’d been like, ‘Holy—I didn’t realize that there’s good food out there, like—what the heck happened to our dog?’”

Matt Zeigler:

“Oh, that’s funny. Oh, so he put on 25 pounds—was something—did you convert the food you get?”

Kevin Muir:

“I think we just put him back on the other food, and eventually it came off. Poor f—but he was a great dog, he really was.”

Matt Zeigler:

“Did you guys—was there always a dog in the house? Did we—”

Kevin Muir:

“Did we always have animals? And even like as—as young adults, as soon as we finished university, we all bought like animals right away. And like, at one point, before we had kids, my wife and I had two dogs and two cats. And I was like, ‘I’m never doing that again.’ I have a rule now—only one of each. There is a hard-and-fast rule, and I always tell people that, like, having two dogs—it sounds romantic, it sounds awesome, until you have it, and then like you have a little baby at home trying to sleep, and then all of a sudden the dogs start barking, you’re just like, ‘No.’ So I just do one of each. We’re very strict now.”

Matt Zeigler:

“I think I’ve cracked the code on it, on finally being accepting of having smaller dogs.”

Kevin Muir:

“Oh, have you?”

Matt Zeigler:

“Yeah, finally—I finally accepted this. But you grow up with big dogs?”

Kevin Muir:

“No, but that was the only ones that we were really around as—”

Matt Zeigler:

“Okay, we had—there was three boys in my house of not totally distant age, so we were a small herd of elephants, and my dad leaving an animal with Mom would not have been the right choice for the longevity of their marriage. So instead, it was opted of just forever promising eventually getting a dog—so we could develop a complex and then, you know, get older and get dogs later. But yeah, so do you have multiple dogs—is what you’re telling me—multiple small dogs?”

Kevin Muir:

“After—after a run here, my little guy who’s eight—we just got another small dog to go with him, and like, they’ve hit it off so far—so far, so good. Talk to me in three months, I might have changed my mind again. But it was one—what kind of dog is it?”

Matt Zeigler:

“You know, they’re—they’re little dogs. They don’t need another like m—you’re just like, ‘No, they’re just little.’ I’m not gonna tell you what kind—it’s little, you know. I’m assuming it’s white.”

Kevin Muir:

“Well, we got—we got one who’s basically too cute for his own good. He’s like a small Muppet of a dog, um, which is absolutely adorable. He’s—he’s Shih Tzu and Yorkie mix—Shorkie, I’ve been told.”

Matt Zeigler:

“And then even better name, because you can’t outdo that—we just rescued this other dog, and he is a part Chihuahua, part Dachshund, which is apparently called a Chiweenie, which is—”

Kevin Muir:

“Great marketing—great marketing.”

Matt Zeigler:

“Um, but the best part is, for a long time, I had a big dog and a little dog, and like the little dog would run between the big dog’s legs, and walking them both—it’s disaster. These two little guys just like bump into each other, and that’s the most of it. They curl up on the couch, they look all cute, and uh, there you go.”

Kevin Muir:

“And you can travel with them.”

Matt Zeigler:

“See, I—I—and I can throw them in the back of the car and go—great. So our joke is um, with my wife—we—so we had these two dogs, two cats. We eventually, you know, the two dogs pass away after 14, 15 years, and it’s time to get a new dog. And then—dogs that we had gotten previously were these like purebred Bearded Collies, and they were, you know, they were great dogs, and they were terrific. And then my wife says, ‘No, I don’t want—’ And it’s like a medium-sized dog. She says, ‘I want a small, non-shedding dog.’ So this is what she tells me. And she wants—she wants a small, non—dog, and we’re going to rescue it.”

Kevin Muir:

“Okay, so this—risky proposition.”

Matt Zeigler:

“Yeah, so we’re going, and we’re spending all this time trying to find this non—small shedding dog that we’re going to rescue. Then kind of six months, and I’m kind of like—because everyone wants that, so nobody’s going to like, you know, when you go to the thing, all it is—”

Kevin Muir:

“How dare you apply market-making tech frame of reference?”

Matt Zeigler:

“So well—no, but the thing is—so eventually though, she’s like looking through all these things, and she falls in love with these Newfoundlands. And like, a Newfoundland is like—like the exact opposite of what she wants.”

Kevin Muir:

“Yeah, it’s like the—and so I—my joke is—so we eventually went and rescued this Newf that’s been with us for—for years, and she’s terrific dog.”

Matt Zeigler:

“How big is—she’s—”

Kevin Muir:

“She’s a small Newf—she’s only 100 pounds—but um, the thing about it is, I said like, you know, ‘You—you wanted a small, non-shedding dog, and you ended up getting like a Newf.’ Is this how you uh, kinda, ‘You wanted a tall husband with a good set of hair, and you ended up with me?’ Because I was like, ‘How do we go from like the exact opposite, you know?’”

Matt Zeigler:

“You could play this spousal Scrabble card as many times as you want. Teeter on the edge here, man.”

Kevin Muir:

“Oh, it’s funny.”


Life in the Gifted Program and Being the “Non-Athletic” Brother

Matt Zeigler:

“Oh, well—so—so you grow up—thank you for sharing the dog story. I knew I had to try to find one if I could get there. The uh, like other interests—are you playing—you playing sports? You’re playing hockey as a kid? What are you—what are you—”

Kevin Muir:

“So, are you a sports guy at all? I am—I come from a sports family. I am—okay, so here, since you’re getting me to open up—so my brother was actually a very good athlete. He played professional hockey for a living. He won the Stanley Cup, and uh, so I grew up thinking I was terrible at sports ‘cause my brother was terrific at every sport he tried. He crushed me. He was taller, he was bigger, like he was better. It wasn’t even close. I literally grew up thinking I was the worst sports guy around.”

Matt Zeigler:

“I would go and people would say like, ‘Oh, do you—you want to play baseball?’ And I’d be like, ‘I’m not very good.’ And then I would go play with them—I go, ‘I’m not very good, but you’re terrible,’ like because I was so used to playing with the guy that was like, you know, just an unbelievable athlete. Um, but no, I did not play uh, you know, a lot of sports.”

Kevin Muir:

“The only thing I ended up being good at was I have a good sense of balance. So I was actually—even though I grew up in Winnipeg—we did a lot of water skiing at the cottage, and then eventually I picked up uh, downhill skiing as I got older, and that came very naturally and easy to me. And that’s kinda the sport I would probably say I have the natural affinity to.”

Matt Zeigler:

“Is this middle brother, youngest brother?”

Kevin Muir:

“Yeah, the middle one. So yeah, so extra pain because like—oh yeah, not only that, he was tall. As I told you, I was late maturing—I was short, like he—he was the same size as me even though he was three years younger, like we would play in house league hockey, and so I would be playing in my year, and he would be coming and playing up, like basically in my year as well, like—is that embarrassing or what?”

Matt Zeigler:

“So rough.”

Kevin Muir:

“And he was better than me, like—like—like not just was he in my league, he was better than me.”

Matt Zeigler:

“So were Mom or Dad athletes at all? There was like—”

Kevin Muir:

“My mom’s side had some like tennis players, and my dad was a good hockey player growing up, but not to that extent, like it was kinda—it was unexpected that he was so good. But my dad always tells the story—he says, ‘I put skates on him, and he just skated—it worked.’”

Matt Zeigler:

“Yeah, yeah, like he would go and—I remember—so we grew up in Winnipeg—really cold, outdoor rinks everywhere—he would go after school straight to the rink, then he would come home for dinner and then go back until like they turned off the lights at the—at the place. Like, so it was just hockey, hockey, hockey.”

Kevin Muir:

“So everyone always goes, you know, like, ‘Oh, you know, you must know a lot about hockey, you must like a lot of hockey.’ I said, ‘I have watched so much hockey, I—I have no interest, like zero, like I’m so done with hockey.’ Like, let’s put it this way—the other day, like last year when Edmonton did well—I think it was Edmonton, right? They were in the Stanley Cup Finals—and I was like, ‘Okay, I’m going to watch this. I got a Canadian team in the finals.’ And then I’m like looking at this um, this MC—I’m like, ‘Who is this McDavid guy? This guy can really play.’ That’s how I was—I was like, ‘This guy can really play hockey.’ I was like—I—you know, I saw him—I was good.”

Matt Zeigler:

“You check in once in a while.”

Kevin Muir:

“Yeah, see how the boys are doing—that’s it. Only if Canada goes far.”

Matt Zeigler:

“Who—who is the team? Like, who’s the household allegiance to?”

Kevin Muir:

“Uh, there really is none, like uh, ‘cause, you know, like my brother played for a million teams. We grew up with the Jets, but we kinda left. Toronto was an easy team to hate—they—they were like—had this terrible owner, like—I guess my dad’s a Montreal fan, but like realistically, there was really nobody that we just loved. And half the time, I would just sit there, you know, analyzing left-wing lock and playing the trap and look—these different systems—and we wouldn’t be caring about like who was—who was playing. We’d be like talking about, ‘Okay, this guy did this, this guy broke down here, you know, look—this guy’s plus-minus stuff,’ like—so it was very analytical, and so it did—it kinda took the fun out of uh, you know, rooting for a team.”

Matt Zeigler:

“So like watching hockey in your house is actually critical strategy—”

Kevin Muir:

“Yeah, like critical game analysis on like who’s setting stuff up and doing stuff.”

Matt Zeigler:

“Well, listen, my wife, you know, accuses me of this all the time. She’s like, ‘Why can’t you just enjoy things?’ Like, so I—I watched this video the other day of a guy that was talking about what makes a good story, and he was analyzing it, and it was just a fascinating video. And he was talking about the elements and how it works, and then he was talking about how he took his wife to Wonder Woman, and they came out of it, and she’s like, ‘What do you think?’ And he’s like—and he’s about to talk, and she’s like, ‘Shh, don’t say anything, don’t ruin it for me, don’t—don’t say anything, just don’t—just shut your mouth.’ And he’s like, ‘Okay.’ And he’s—and then she’s like—like an hour later, she’s like, ‘Okay, tell me what was wrong with the story.’ And when—when he told you, it was true—I was like, ‘Oh no, he’s right.’ It’s good as a movie—that was—that was a poorly written part that ended up ruining the whole thing.”

Kevin Muir:

“And this guy was just—he could only see things with a critical lens that way. And he says, ‘Yeah, if you wanted—like I get it—if you just want to enjoy the—the movie, then don’t think about these things. But if you’re somebody that enjoys, you know, or thinking about crafting stories, then these sorts of things are what you have to look at.’”

Matt Zeigler:

“Do you see a difference inside of that between like being an editor or a critic or something like that versus being a creator? I think about this even like with your own stuff, your own writing—how do you balance that? Because you need the critical eye, but then you also need the creative element that just is willing to put it on the page.”

Kevin Muir:

“Yeah, you have to go for it. There hits points where you just have to say, ‘Ah, you know what, it’s never going to be perfect.’ Um, and one of the big problems that I have sometimes is I—I sit there, and I have a post that’s three-quarters written, and I’m just like, ‘Oh, I gotta just make it perfect,’ or, ‘I gotta do this,’ you know, like—what’s the old line about, like, ‘Perfect is the enemy of good,’ or what is it—‘Perfect is the enemy of good enough,’ or whatever? There’s some—”

Matt Zeigler:

“‘Perfect is the enemy of good.’”

Kevin Muir:

“‘Don’t let perfect be the enemy of good,’ yeah. And so you really do, at a certain point, just need to go for it. And I—I highly recommend that—do your best, work hard, but then eventually just like throw it out there and see what happens, and then the next—move on to the next one.”

Matt Zeigler:

“Yeah, you know, and you never know what you have to say that somebody else is going to latch on to. How many times have you sent something out and thought like, ‘I don’t know about this one,’ and you got 100 responses versus something where you’re like, ‘This is the greatest thing ever,’ and it’s crickets, right?”

Kevin Muir:

“Oh, Matt, I can’t tell you—so people ask me this all the time. They’re like, um, ‘Can you predict the ones that are going to resonate with people?’ Um, and I’m always like, ‘No, I have no clue.’ Because there’s ones that I am so proud of that I feel like are so smart, and I’m like, ‘Wow, I nailed this. I’m like, this is so clever, this is so well-presented.’ And as you say—just crickets. And then other ones, I’m just like, ‘Okay,’ and I just whip it off, and then people are like, ‘Oh my God, that’s the most, you know, insightful thing ever.’ And I’m like, ‘What?’ Like—like even like the other day, I was on um, I was on Odd Lots, and I don’t want to like uh, name-drop or anything, but like the—the reality is that I’ve been wanting to be on Odd Lots forever, right? Like it—and by the way, I did a—I was too nervous, and I was like—it—I don’t usually get nervous, but I was nervous because it—I had built it up in my mind so much. Um, but the whole point about this was that—that was like a throwaway piece that I had written that I was like, ‘Oh, you know what, this is interesting, you know, the—the market’s really concentrated,’ and bla—I whipped off a piece—not a throwaway, but it wasn’t something I felt super passionate about. And like, Tracy, you know, emails me—she’s like, ‘Oh, I love this, like you want to come on, you know, talk about it?’ I’m like, ‘Uh, okay.’ Like—and I had to go learn about it and because I was prepping something I was, you know, felt strongly about that I—that I’d spent a long time thinking about. And so to that, you know, extent, I’m never sure about what’s going to take off and what’s going to be the—the ones that people gravitate towards.”

Matt Zeigler:

“And I think it’s hard to unpack the critical eyes of others. And I can only imagine, like, Tracy Alloway, you know, Joe Weisenthal—like they’ve trained the critical eye of like things that they think will work, right?”

Kevin Muir:

“Yes, so now you’re getting sucked up in the vacuum cleaner of—well, I think the—the reality is that they’re looking for stuff that’s outside the box, right? So they need something that not everyone’s talking about. So the more unusual it is, and—and just kinda by its very nature, they—they’ll want to be at the early stages of it. They’ll see something, and they’ll be like, ‘Okay, let’s talk about this before it becomes everyone’s talking about it.’ And so they look at it, and uh, and that’s why it was that um, point. But it was, as I said, it was not something I expected, like I thought we were going to talk about, you know, Fed balance sheet or, you know, something that was very common, and then she’s like, ‘No, let’s talk about stock market concentration.’ I was like, ‘Great—great, so excited to go pretend I did all the research that I actually need to—to not have a panic attack.’”


School Years: Gifted Program and Moving to Toronto

Matt Zeigler:

“But on the other side of that mic—all right, so what about—take me back to like in school. So aside from playing games, how good of a student are you? What—what are the report cards look like in middle school and high school for uh, for you?”

Kevin Muir:

“Really are just like uh, delving in there, like I feel like I’m on the therapist chair. Um, okay, so I—I was in the—the—the—the enriched or gifted program. So I went to a special school where it got—got sent off, and—and I was with the like—the geeks, like I was—Freaks and Geeks, that show, might as well be about me, like it’s—that’s what it was. And it was just—it was a very—it was a special program where people came from all across, you know, Winnipeg to go to this one class, and—and it was—it was the greatest thing ever, uh, you know, and I—my best friend to this day is still from there, and uh, I—I—I loved it, and it was so great. Um, but it—we were—we were definitely not cool.”

Matt Zeigler:

“Is this at all part of like reaction to his brother already taken off in sports at this point?”

Kevin Muir:

“He was already that way—it was—it was actually just that I—I wasn’t getting along at my—so I went to French immersion. My mom—like, my mom’s third language is English, like so uh, you know, and—and she—they thought it was important I learned French, so I went to French immersion. I wasn’t the greatest at French—I think it’s very difficult, um—so I was in a French immersion school in middle school, wasn’t going well, and then my—I was like, ‘Forget this, like, you know, this isn’t—this is for the birds.’ And so at that point, he decided, ‘Okay, let’s find something for him.’ And then he was like, ‘Okay, this is it—this is where the kid’s going to fit in.’ And uh, he put me there, and it was the greatest thing ever—changed, like it really did. I went from not enjoying school to absolutely loving it, and uh, it was—it was a great experience.”

Matt Zeigler:

“Okay, so in a school like that, it’s not just your standard fare stuff. You took some other weird classes there—had to be some like Greek mythology, some type of advanced statistics that you were like, ‘Oh my God, I love this thing,’ and now as an adult, you’re like, ‘Most people didn’t learn this thing, and I still care.’”

Kevin Muir:

“Um, yeah, so for me, it was even a little more complicated because unfortunately, in Winnipeg, you go to grade 12, and then when I got—my dad got the—the company moved to Toronto because Winnipeg is obviously not a very big financial mecca. And so they moved to Toronto and happened to move on my 12th year. So I didn’t graduate with my—with my class, and it was difficult—all as well—because not only was I going there, I would already done a lot of these programs. So I come to Ontario, and I come to Toronto, and I’m like, ‘I’ve already done all this.’ Like, I remember sitting in calculus class, and one of the girls that I was sitting beside, you know, what—test comes by, and after like halfway through the thing, and she looks at him, and like I got a good mark, and she’s like, ‘Thought you were failing.’ And I was like, ‘What do you mean?’ And she’s like, ‘I thought you were like—I like you—you seem to not pay any attention, and like you’re only here half the time.’ And like—and I’m like, ‘Well, I already did all this.’ And so it ended up being difficult, and uh, in terms of actual classes—was there something that inspired me? No, like there was just—it was standard, like, you know, calculus, physics, whatever. As I said, I was more into game theory, and there wasn’t really a lot of game theory-type, you know, courses in high school.”


Starting at Bank of Montreal and the Path to Institutional Trading

Matt Zeigler:

“So I go to school—I—I started a school out of like—called Western. I end up playing too much bridge. I come back—I’m going to U—I’m—transfer to U of—I’m there—I living in the fraternity. I’m not a fraternity guy, but I don’t know anyone, so I join a fraternity because like I’m, you know, I missed that whole first year of university ‘cause I switched universities. So I’m living in the fraternity—I—I—I try to start looking for part-time jobs. I get a job at what’s called Bank of Montreal InvestorLine, which is like their TD—like their um, discount stock brokerage. And so this is in 1989-90, and I don’t know if people remember—maybe it’s 91—no, no, it’s 90—and people remember, but there’s the ’87 crash, which was very, very traumatic, and there was actually another crash in ’89—there was another little crash in ’89—and so a lot of the um, people were very hesitant to uh, kinda expand because they were worried about this was going to happen again. So this was a big thing—this—this starting this discount stock brokerage—but they didn’t want to go and commit to people. So they got me to come and uh, like work after hours, and I would literally just answer phone calls and give people quotes, okay? Like, that’s like, you know, I’m 20 years old or whatever—19 years old—and I’m, you know, working from 4 to 8. And I was working, and then what happens is the market starts to get busier, and they say, ‘You know what, you want to work today, like the whole day—like 8 to 8?’ I go, ‘Sure.’ The thing about it is that they’re paying me like, in essence, cash, because they don’t want to put me on this, and they’re paying me too much, and I’m like sitting there working 12-hour days. Next thing I know, I’m not going to school, and I’m just working 12-hour days ‘cause this is awesome, like I’m making all this money. And they’re like, ‘Oh, eventually—’ I kinda, you know, six months or a year into this, they go, ‘We—wait, we gotta give you a job, like this is ridiculous.’ So I take a job, and then within six months, I’m running the desk, which is even more ridiculous.”

Kevin Muir:

“I’m like, literally—wa—wait, just to be clear, you’re answering calls—”

Matt Zeigler:

“Oh, taking orders—eventually taking orders. I get registered, yeah, yeah, just like retail—retail guys—ret—how do you go from that to desk?”

Kevin Muir:

“Well, no, the desk is on—it’s like—I mean, the desk there—like I’m just talking about—so they—they put me in charge of the like the—they call it a desk—it’s not really a desk—it’s just order desk—it’s a trading operation, sure. So they put me in charge, and I do that for like six months, and I’m like a level-five manager, and like—and I’m doing really well, and I’m trying to go to school at night, and I’m like, ‘Wait, like this isn’t what I—I don’t want to be a discount stock brokerage manager, like this isn’t what I signed up for.’ And like a complete buffoon, I get a job—I find somebody who—I know the woman that works there—one of her h—her husband knows somebody in Chicago, and I get a job in Chicago because this is what I always wanted to do, like I loved Market Wizards. This was basically my book—I wanted to be the next George Soros or Stanley Druckenmiller. And so a lot of these guys, like Paul Tudor Jones—he started in the pit. So I go to Chicago, and I hate it—I can’t stand it. It’s terrible. And you know, I love Chicago—I love the Chicago people, I love Chicago traders—I think they’re the greatest bunch of traders out there—but this just is not for me, like, you know, this is a lot of testosterone, like just running through the pits, and it’s just—you’re up there, and like I remember guys putting their hands up, and they couldn’t put them down ‘cause they’re so tightly, like they’re—they’re so tightly put in there.”

Matt Zeigler:

“And so I come back, and I get a job, and so my dad says, ‘Okay, this is what you’re going to do. You’re going to go and—listen, if anyone’s young and listening to this—to this story, if you managed to last this long, um, I’m going to give some life advice here that my dad gave me that I think is really, really important, okay? He says, ‘Okay, this is what you’re going to do. You’re going to find out the head traders at the banks you want to work for or the—the broker firms you want to work for, and you’re going to write a letter, and you’re going to send it to them, and then you’re going to follow up with a phone call in a week’s time because—don’t—this is back when you had the mail stuff.’ So I find the six or seven firms I want to work for, and it’s like RBC, TD—uh, not TD—the CIBC, Midland Walwyn, and Gordon Capital. Gordon Capital was the beans, man—like that’s the one I wanted to work for. Gordon Capital was the firm that had kinda created the bought deal, and they were just awesome. So I send off all my letters, and then uh, you know, it comes day for me to phone them. So I phone, and I start with the one I want to, you know, work on the most. So I start with Gordon Capital, and I remember this—the guy’s name was Howie. Howie is just a jerk—that’s why it’s always—it stole in my mind. So I phone up and go, ‘You know, can I speak to Howie?’ They’re like, ‘Howie pick up.’ And so he goes, ‘Howie here.’ I go, ‘Hi, Howie, it’s Kevin Muir, you know, I sent you a letter, blah blah blah.’ He goes, ‘What are you doing phoning me, kid?’ And he proceeds to yell at me for 20 seconds, tell me to f off, and hangs up on my face—like literally, that’s what he did, like that’s—that’s it.”

Kevin Muir:

“And I’m some 20-year-old kid—this has just happened to me—I like wanted to cry, like I—like I—I probably did cry if I’m being honest with it—I—and I—you know, so I’m like, ‘God, this is terrible—my dad gave me the worst advice ever.’ Um, so, you know, I stop, and then my dad comes home that night—he goes, ‘How—how’d it go?’ And I said, ‘Well, didn’t go well.’ I tell him the story about Howie, and he laughs—he thinks this is hilarious. And then he says, ‘Well, how did your next call go?’ And I said, ‘What do you mean, the next call? Nobody wants to hear from me.’ And he says, ‘This is what you’re going to do—you’re going to get back on the phone, and you’re going to phone the next call.’ And sure enough, my next one was at this firm called First Marathon, and it was a guy named Mike Wekerle, who ended up being one of Canada’s greatest block traders. Um, he was super kind to me—he was the opposite of Howie, you know, like—and that’s one of the things in life—you can choose to be an idiot and—and be forever immortalized as Howie the ass—”

Matt Zeigler:

“Can I say—yeah, you can say it.”

Kevin Muir:

“Yeah, okay—Howie the ass—you don’t—to make sweet, sweet love to—you can kill—or you could be the Mike Wekerle that’s, you know, was super kind to me and—and is forever going to be remembered. And you know, I was lucky enough to have Mike on my—on my show, and I was like, ‘Mike, you probably don’t remember this, but you were instrumental in giving me kinda the confidence to go and to keep going—going.’ And because you were just kind, and there’s—it cost you nothing to be kind, and like—anyways, um, so Mike was nice to me—obviously that didn’t go anywhere—but then the next firm I phone was RBC Dominion Securities—RBC, um, happens to have uh, a trader that is who eventually ends up being my boss—but he’s intense, and the guy that’s working for him has just quit because this trader is so intense. And this—this guy who ends up being my friend—you know, he’s only like five years older than me, but back then it feels like that five years is like a lot, right—uh, he says to me, he says, ‘Kev, there was guys better at trading, there was guys better at computers, but you were the best mix of both.’ And so he hires me on the desk. So I’m literally going straight onto the institutional equity desk, and I am doing all of the index trading and the basket trading for the greatest firm in Canada at the time—and it probably still is the greatest firm, but at the time, we were by far the best. And it was the—they were—it was so awesome because they were such an entrepreneurial bunch—they let you do things, they were so, you know, great—it was—it was so—it was such a great experience, and I just—I loved every minute of it, and I just—I used to love going to work, and it was just so exciting.”


Pioneering Computer Trading at RBC in the ‘90s

Matt Zeigler:

“And the long and short of it is that I—I remember talking to my big boss and saying, ‘You know, you want me to get my degree?’ ‘Cause you were asking about my degree. He go, ‘I don’t care if you get your degree.’ And so I got my degree—barely, like just barely—like I went to school at night while I was, you know, making all this money and doing well, um, and it was just—I got it just because I felt like if I didn’t have it, I would forever, you know, worry that I was like—I missed something. But I literally—I think I needed a 1.50 grade point average to—to pass, and I think I got a 1.50—like I think I did not—like you have to give me there—I did two decimal places—you didn’t have to round up—you didn’t mess—”

Kevin Muir:

“I did not waste any extra energy getting better marks than I needed, which is a thing of great beauty.”

Matt Zeigler:

“Perfectly executed.”

Kevin Muir:

“That’s right—perfectly executed.”

Matt Zeigler:

“This thing about the computers and the trading and the balance, like—were you aware that you could combine these two things in the way—like did you know this was a skill beforehand, or did you walk in on this and them going, ‘You possess a skill that now we suddenly value’?”

Kevin Muir:

“No—so a—a little bit of both. Um, I love computers, and I—you know, if people ask me, ‘If you hadn’t been doing trading, what would you have done?’ I definitely would have gone into computers. Um, I was lucky in that my father knew enough—like although he was in research and although he wasn’t on the trading desk, he knew enough that he would kinda talk to me about different traders. And so there was no doubt I was aware about the trend towards computers at this time, and uh, then I just took it and ran with it—like literally, we had um, so one of the things about our firm was that we were able to trade proprietary for the bank. So that was, in essence, I eventually joined a group that was—we just got a percentage of what we made. And I remember sitting there, and I figured out that, you know, all these computers that I had direct contact—or direct access to the exchange with—so that we could do baskets, I figured all they could also do interlisted arbitrage, like we could write programs to buy and sell when something got out of line between Canada versus US. And I—I’ll never forget sitting there writing it, and one of the guys—the—the—the head of like risk says, ‘What are you doing?’ And I said, ‘Well, I’m running this program to do this, blah blah blah.’ He goes, ‘I already got guys doing that, like why you bothering?’ Like he said that to me—he said, like, ‘Why you bothering?’ And this machine kinda within two years was making way more than any of those guys. And so it was—I was very fortunate to be at a place that had the technology that let me run with it at a time in history when my skill sets were perfectly aligned with what was happening in the markets, like, you know, 10 years earlier, it doesn’t—the computer skills don’t help as much.”

Matt Zeigler:

“Yeah, and 10 years after, it’s a totally different state because now there’s been a Kevin Muir at all the shops, like—”

Kevin Muir:

“Right—10 years later, it’s actually—you almost need to be a dedicated computer guy, like my—my seat at RBC ended up being the guy that’s in that uh, Flash Boys movie—I can’t remember what his name is there—like whoever it is that was like one of my—like one of my duties, and one of the things that guy was in that group and doing that thing. And so—but if you look at those guys, they were way more computer-oriented—they—they had already become like you needed to be a Waterloo or whatever, you know, like a math—like a true computer nerd as opposed to a trader who happens to be able to do computers, right? You needed that advanced computer science background—love—whatever—but you were in that window where it was like—like, ‘Sure, I can build this scale model with Legos.’”

Matt Zeigler:

“Exactly—nobody else is doing it.”

Kevin Muir:

“I—it was—it was wild, like there was times I—I still think back to that computer that we got going, and we were trading through a firm called ITG, which is a very big um, kinda direct shop that a lot of people use. And I remember our sales lady coming up to us and saying, ‘Uh, D—I just was in a meeting, and we were going through all the accounts for like the whole firm, and they said, “All right, can anyone guess what the number one account is this—this year—this month?” And everyone’s guessing like Fidelity and like CapOp and all these names, and they’re like, “Nope—RBCD’s machine number two.”’ We were literally the best client that ITG had one month—that’s how much business we were doing. And it was just like—the Americans didn’t understand that stuff was interlisted, and so we would sit there, and we would provide liquidity and just trade, like they would come for Research in Motion, and if you think about it, you guys were buyers because you love the story—or Nortel even—whatever—whatever it was, you guys were buyers, but the—the actual stock was all in Canada. So you got these kinda natural like sellings in one place, the buyings in the other place, and so there was literally periods where it just sat there—bing, bing, bing, bing—and like I was like—like I was scared at times that something was wrong because it was making so much money. I was like—because, you know, the one thing you do have to learn as a trader is if something seems too good to be true, it’s—it’s like, you’re like, ‘No, it’s definitely too good to be true.’”


Learning Hard Lessons About Market Traps and Trading Ethics

Matt Zeigler:

“Well, because I got a great story to tell you about that if you want, uh, about being too good to be true. So one time, this machine’s going—it’s doing all this money, making all this money—and then the—the main desk—like I’m on the derivatives desk, but the main desk trader comes up to me. He says, ‘Kev, I got this trader that’s like this hedge fund guy who’s willing to do this arbitrage—not arbitrage—he’s willing to trade with me on, you know, on—in Canada of this stock, and I could immediately sell it for a 10-cent profit in the US. I’ve done like, you know, quarter million—do you want to do some?’ And I’m like, ‘Okay, wait—so you’re telling me that this hedge fund guy is phoning you up and is wanting to do this trade that is very clearly an arb—like against him?’ He says, ‘Yeah.’ He said, ‘Whoa, whoa, whoa—hey, have you played Scrabble with my wife to be?’ I’m like, ‘Turn off the machine.’ I’m like, ‘Turn it off,’ like I—like I went and told the guys, ‘Turn off the stock,’ like it was this one stock. And I’m like, ‘I gotta figure out why,’ because I know that if this guy’s doing this, it is—there’s something there that I’m missing. And sure enough, it was trading with what’s known as a due bill in the States. So it looked like there was a dime profit, but there was really like a $1.50 or $2 loss, like occurring. And I remember the um, the sales guy coming up to me for that account and saying, ‘I’m so sorry that my client tried to pick you guys off.’ And I said, ‘Are you kidding me? It’s the greatest thing that ever happened. If he hadn’t picked me off, I would—if he had just done it in the machine, I wouldn’t have figured it out, and it might have been like days before,’ because the due bill doesn’t come for another few days. And once I figured it out, I very quickly could—you know, I might—I can’t remember how much we were at—I think we were at a couple hundred grand, but I think I made back like half of it arbing it the other way—putting it to the right price—like I was like, ‘Okay, okay, now we’re going to put this to the right price.’ And so I immediately unwound everything we had done and then did a little extra the other way. Um, but I remember the guy apologizing—I was like, ‘No, you don’t have anything to apologize for—this is the greatest thing ever.’ That guy hadn’t been so greedy and tried to do blocks, like—that was it—he was trying to do blocks.”

Kevin Muir:

“And I really don’t understand that guy because that was a dumb play in—in lots of different reasons. One of them was—you ultimately—you got found out quicker, but the other thing is that you were picking off your friends, like even though like you’re—they’re your brokers, like you’re—you’re talking to them, and you shouldn’t ever do that, like—and another quick story about this—like I remember um, one time we figured out there was something called the—the—an EFP, which is exchange for physical. So we were trading the index versus the futures, and so we figured out that there was a dividend everyone was missing on a big stock—like one—like Bell Canada or something—and it changed the EFP um, price significantly. And I remember going out there and like—let’s say it was trading like a dime to 15 cents, like a 10-cent bid, 15-cent offer—and it was all of a sudden worth a dollar. And I was like, ‘Holy smokes.’ And like Peter and my boss were like, ‘Let’s—let’s just get on the dime bid and see if anyone hits us.’ And I said, ‘No, no—let’s move it and let’s get some size,’ right? So I remember going out there, and we like go, ‘What’s the market?’ And they go, ‘10 to 15.’ I go, ‘Okay, bought from you at 15—I’m 15 bid—where does it come?’ And then someone sells us some at 20, and I go, ‘Bought from you at 20,’ and—what—and I start marching it up. And so like—I can’t remember—guys are selling me—like this is an EFP, so it’s like 5 million, 10 million. Finally, I move it up from like 20 to 50—50, okay—don’t forget, it’s worth a dollar in my books, okay? And my—my arch-nemesis at CIBC—he’s woken up to the fact that there’s—that I’m moving it, and he offers me size, and I’m like, ‘There it is.’ And I’m like, ‘Okay,’ like—I can’t remember—it’s 200 or something—it was a big number—and I was like, ‘Bought from you,’ and, ‘We’re bid,’ okay? And so—and then immediately I get a call overhead, and he’s like—it’s him—and he’s like, ‘Kev, you just lifted me on this EFP—what’s going on?’ And like, you know, I—at that point, I can do a lot of different things, but the right thing to do is like—I tell him—I don’t say to him, ‘Everything’s okay—sell me another 200.’ I say to him, ‘Go check your numbers,’ like I don’t—like—he—and he doesn’t ask to be let off of it, you know—he goes and checks his numbers, and then next thing I know, he’s 60 bid trying to get it back because he’s realized he’s screwed up.”

Matt Zeigler:

“Yeah, but the point is that—like guys that don’t behave honorably, like that—and like—are trying to pick guys off—it—it comes back to you, like it’s—it’s—it’s a small street. It’s that the guys, you know, try to be picking off clients, picking off their dealers, or picking off even each other—I—I never felt that that was fair, like if you were on the pit and you were trading, that’s fine—I had no problem with it—but if you’re going to fool me overhead, I’m not going to like, you know, try to pick you off to your face.”


Meeting His Wife at a Fraternity Party

Matt Zeigler: Where did you meet your wife? Did you meet her in school? I know I met my wife at a fraternity party.

Kevin: Okay, frat boy Kevin! Yeah, I met my wife at a fraternity party. Funny enough, I was working at the time and financing all of our kegs. I was the only one who could afford the deposit—$5,000 or $3,000, whatever it was. You had to put the deposit down on the kegs, and our fraternity was terrible at keeping track of things. So I was like, “Okay, fine, I’ll finance the stupid things.”

Matt Zeigler: So your wife comes to one of these keg parties that you’re self-financing with your stockbroker job?

Kevin: Yes, that’s correct. We hit it off immediately.

Matt Zeigler: Did you know right away?

Kevin: Yeah, we hit it off, and that was it. It’s been a while—lots of good years. A lot of good Scrabble, not too much scrabbling on occasion!


Starting a Family and Career Progression

Matt Zeigler: Fast forward a bit—when do you start having kids? Is that once you’re in the prop trading job? How far along into the role do you start expanding the family?

Kevin: So, I get my job at RBC when I’m 23. By 26, I’m fully into equity derivatives, in charge of all the risk. Probably from 26 to 27 or so, my wife’s sitting there saying, “I want to travel,” and I’m like, “I can’t travel.” She’s like, “Well, I’m not going to just sit here.” I’d started making some money, and she’s like, “Why am I working?” She was at Talstar or something and said, “I’m quitting.” I was like, “Okay.” She goes off traveling with my little sister—to Nepal, Tibet, all these places.

I’ve got a funny story about that. She goes to Nepal because of Seven Years in Tibet, the Brad Pitt movie. This is during either the Long-Term Capital crisis or the Asian financial crisis—I can’t remember which. She’s trekking from monastery to monastery, hasn’t slept in a decent bed, and finally gets on a plane to Thailand. She gets off, hasn’t booked anywhere to stay, and says to the taxi driver, “Take me to your best hotel.” She’s a low-key person, but she was just so sick of roughing it. She phones me—this is the ‘90s, when calling wasn’t easy—and says, “I don’t know where I am. I’m in the fanciest hotel in Thailand. It’s 8,000 baht or something, I don’t know what’s going on.” I’m sitting there thinking, “Oh my God, what has she done? This bill’s going to be brutal.” But it’s during the Asian crisis, so it ends up being like $210—or even less. Nothing!

Anyway, we have our first kid when I’m 29. I’d been at RBC for six years or so. At that point, the bank was slowly overtaking the dealer. It started as an entrepreneurial place, but over time, the bank got more involved. Rightfully so—I look back at some of the stuff we were doing, and I’m like, “I’d never let some 27-year-old punk do this.” It was irresponsible. We made tons of money, and it was fun, but I wasn’t mature enough to realize that was a unique time, not how life always works.


Challenges at RBC and Quitting

Kevin: The bank starts creeping in, telling me, “You can’t trade this, you can’t trade that.” I’m getting in trouble—“Kev, you can’t do this.” Then we have our daughter. She’s born with a heart defect, corrected at birth, but it was a very emotional time for me. It was like a near-death experience—not that I died, but it hit me hard. I never felt the same way about work after that. A couple of other things made it less fun too. Three months after she’s born, we have our best quarter ever, and I think, “I’m going to be like Michael Jordan—sink the basket and walk away.” So I quit.

At the time, I didn’t know what I’d do next. I hadn’t made enough to never work again, but enough to not worry about the next year. I thought, “I could work for a hedge fund, but I don’t want to do sell-side again for a while.” If I worked at a hedge fund for a year and quit, people would remember me as the schmuck who lasted a year. But if I tried something on my own for a year and then went to a hedge fund, no one would care about that year. So I started trading for myself. Eventually, another guy from my old shop joined me, and that was it. Along the way, I started writing the letter and doing the podcast.

One thing I laugh about—I’ve never really had a steady paycheck. Even at RBC, it was a small draw, and it’s been “eat what you kill” for the last 35 years.

Matt Zeigler: When you tell your wife you’re leaving the job—obviously after the scary moment with your daughter’s heart defect—are you both freaked out about it?

Kevin: She was more worried about the child. She’s always been supportive. I never felt tension about it. She wasn’t like, “No, stay!” She’s not a fan of the Bay Street douchebags—our version of Wall Street. When we meet some larger-than-life trader guy trying to impress her by being brash, I’m like, “That’s not going to work with her.”


Building The Macro Tourist Community

Matt Zeigler: That commitment to figuring things out for the right reasons ties into the community you’ve built with The Macro Tourist. I love the letter—not just for the memes, though I come back for those. Where can people find you if they want to learn more?

Kevin: Go to themacrotourist.com. If you want samples, email me at kevin@themacrotourist.com—I’ll send them off. Also, join our chat—it’s easy to find, with lots of smart people. I’m proud of how it’s taken off. Twitter got mean and unfriendly, and when I got frustrated with Elon, I committed to Substack. The chat’s been a great surprise.

Matt Zeigler: Between the Market Huddle podcast and the letter, you’ve built a real community. I love those summer emails with chat highlights—it’s my favorite thing in my inbox.

Kevin: Glad you like that! It’s a real community, and that’s rare. Thanks for being part of it.


Reflections on Trading and Life

Matt Zeigler: Does it bother you that there aren’t monocultural moments like The Tragically Hip’s last concert for your daughter?

Kevin: That wasn’t that long ago—she remembers it. I’m not fussed. I think there’ll be moments like that for her and my other kids—different, but they’ll happen. Humans haven’t changed.

Matt Zeigler: Here’s a trading aside—people romanticize the past, thinking it was easy to make money.

Kevin: Exactly.

“I tell people my story, and I always say, ‘Oh, I would have made so much money back then; it was so easy.’ And everyone always thinks it was so easy. But I always tell them, ‘Listen, it wasn’t easy.’ Right now, there’s somebody who is quietly making a fortune, someone who has figured out the equivalent of my interlisted arbitrage. When I was doing my interlisted arbitrage on my machine, I wasn’t telling everyone—I was quiet about it. There’s somebody somewhere doing the exact same thing.

“There are always people making money, and it’s always hard. I remember thinking specifically, when I would listen to their stories—like the trader above me, 5 or 10 years older than me—I’d think, ‘If I had just been there when 87 happened, if I had just been there then…’ People always look back on the past, over-romanticizing it.”

Matt Zeigler: Tell the Norwegian art story—it relates to this.

Kevin:

I’ll quickly go through it. For those who don’t know, in the late ’60s and early ’70s, I believe, Norway discovered oil off their coast. It was this huge boom, and everyone was rushing out to get blocks of water they could drill in. There was an enormous fortune to be made with this Norwegian offshore oil boom. For those who don’t know, we think of Norway as a very rich country now, but up until that point, it wasn’t. It was actually the poorer of the Scandinavian countries, mostly reliant on fishing—not a lot was going on in Norway. So, they discovered this oil, and the long and short of it is that all these guys were rushing out to buy pieces of this water to drill in.

Then there’s this trader who looks at the situation and says, ‘Okay, that’s getting fully priced in. What can I do?’ He decides to start accumulating Norwegian art. He just starts buying all this art, and you might think, ‘What kind of crazy guy is this? Why is he buying Norwegian art?’ The long and short of it is that he had figured out that once all these guys made their fortune from the offshore oil, they’d be looking for something to do with their money. Art is a very local market, and when a Norwegian guy makes some money, yes, he might go buy a Picasso, but he’s also suddenly going to want Norwegian art. So, while everyone was busy fighting and paying too much for this offshore oil, this guy was quietly accumulating Norwegian art. A year or two later, when all these newly rich guys started looking to spend their money, he was there with offerings for them and made a fortune that way.

To me, that epitomizes trading. What’s interesting is if you go back and read Liar’s Poker again, you’ll see Michael Lewis talks about two guys who were his mentors. One of them is this guy, Dash Riprock, I think, who sits around watching for a bond to be, say, 30 seconds too expensive, and then he arbitrages it. He’s kind of a block-and-tackle kind of guy—just straightforward. But then there’s this other guy, this big, bold trader. If you reread that section, Lewis describes how, when something happens, this trader is already onto the next iteration, trying to figure out, ‘Okay, this is occurring—what’s the next step?’ Instead of just focusing on the first derivative, he goes for the second derivative. In other words, he thinks, ‘Once everyone does this, what’s that going to mean for the next thing?’ It’s like thinking multiple moves ahead in chess.


The Importance of Finding What You Truly Love in Markets

Matt Zeigler: You’ve talked about trying things—like going to Chicago, thinking it’d be great, then hating it.

Kevin: Yeah, I thought it’d be the greatest thing ever, but it wasn’t. We tell our kids, “Don’t fuss—you’ll figure it out.” I saw guys at RBC try trading, hate it, and go back to research. You’ve got to find what matches you. This industry attracts a lot of people, but you better love it—not just do it for the money. You can hear it in their voice when they truly love markets.

The “grammar” of trading with SIG’s Todd Simkin

SIG’s Todd Simkin went on Ted Seides’ Capital Allocators podcast recently. I’m biased but Todd’s interviews are some of the best you’ll find in finance (also SIG interviews are rare to come by). Come for the discussions of risk and trader education, stay because his personal stories are highly thought-provoking.

My notes on his prior interviews are some of my most-read podcast summaries.

Notes From SIG’s Todd Simkin (35 min read)

5 Takeaways From Todd Simkin on The AlphaMind Podcast (11 min read)

I didn’t do a full breakdown of this one but I’ll point you to a few key parts.

Ted asks, “When someone’s learning and getting up the curve, what are some of those most important questions that a more senior trader might ask someone that they need time to learn to ask themself?”

If I had a script for it, it’d be easy, because then I would just give people a script to use as a checklist, like a pilot does when they’re starting up their plan, or like a surgeon does when they’re starting a surgery. I don’t have a script, and I wish I did, because then I could hand it off to somebody.

Instead, it’s more like a grammar. There are things that you know how to do grammatically that you could not describe. If I were to say to you that I have eight large red French soccer balls, you would know what I mean. It makes sense. And if I were to change the order of the adjectives, it would sound crazy to you. If I moved one adjective and I said I have “eight red French soccer large balls”, I would certainly not sound like a native speaker.

You’d have a hard time explaining what the right order is for adjectives. A lot of people have gone through and tried to describe the rules here, and it comes down to number, opinion, size, age, shape, color, origin, material and purpose, I think, is the right ordering for the way you use adjectives, and you just know that.

You know that because you’re a native English speaker, you’ve been using the language long enough that something sound right and something sound wrong. In the same way, when junior traders talk about trades, they might point out something that just feels like it doesn’t matter compared to something bigger that does. And I don’t know which question to ask them a priori, I don’t want to say what you need to focus on is the size of the order before the price. Or you really need to focus on where the order is coming from before you look at the underlying rhythm. There’s not a simple answer to it, other than to say it definitely sounds wrong when a junior trader gets it wrong and a senior trader knows it and feels it because they know the grammar. They know what goes into making appropriate decisions for risk allocation under conditions of uncertainty.

What are the signs of a someone who will become a good trader?

I think it actually goes back to the first thing we were talking about with my desire to learn sign language. It was something that I did not have mastery of and I wanted to know it better, and it was entirely self-serving. It was just for me. Nobody else cared whether or not I learned sign language. Nobody was grading me on it.

Everybody that we’re bringing in as quantitative traders is smart. They’re all capable. They are all straight A students in finance or physics or computer science or whatever it might be. What differentiates the ones who end up being great from those who end up being fine are the ones who just really, really want to dig in and get it and understand it and win the game.

You’ll see people that will come up after a mock trading session and say, “Okay, I understand the basic options model. I understand these adjustments that we at Susquehanna make to the basic options model. And I pulled up the formula that we use to plug into the machines that are trading our automated strategies, and it has this additional factor in it. What does that factor mean?”

The person who’s digging in deep enough to pull up the mechanics in the machine to see how it’s treating and see how that differs from what we’re teaching them in an open outcry environment.

That person is not doing it because they’re getting paid an extra X dollars to do it. They’re doing because they just really want to beat the rest of the people in the room at their trade. They want to understand it well enough to know this also might matter. So there’s a drive and an intrinsic curiosity and an extrinsic one.

And then the other part that I’ve already alluded to is that they then talk about it. So when they are curious, they don’t have enough information to learn it on their own. But once they start talking about what they’re curious about and where their questions are, that they are finding the appropriate resources internally, and we have plenty of them to be able to point them in the right direction. To learn more, and then when they learn more. They actually have more questions, not fewer. Those are the people that have a big impact not only on their own trading, but we get to leverage those questions and really improve, best practices across the firm.

Todd tells the story of when he was on Jeopardy and after recording(but before it aired) all Jeff Yass cared about was that Todd bet the right amount in Double Jeopardy, joking that nobody cared if he didn’t know trivia but if he bet the wrong amount he shouldn’t bother coming to work on Monday. Jeff said “Just tell me what each person had at the end of double jeopardy, and I’ll tell you what the right bets, should have been going.”

Todd did indeed get it correct. He lets Ted try by setting up the problem:

Charles had 11,400. I had 10,200 and Peter had 1,600.

The other thing that’s worth knowing is that without knowing the Final Jeopardy category, everybody’s a favor to get it right. Figure out what you think I should bet with my 10,200.

The best decision he’s ever made:

I’ve got five children, and I’ve wanted to make sure that I have a relationship with each of them, so with each of them when they turn ten years old, I’ve done a one-on-one trip with just me and that child. It’s the best piece of advice I have for parents everywhere.

The best advice he ever received:

The advice was passed on to me by my eighth-grade English teacher, John Patterson. But the advice comes from Mark Twain, and it is his famous quote about travel, which is: “Travel is fatal to prejudice, bigotry and narrow mindedness, and many of our people need it sorely.

It’s this idea that you cannot be closed-minded if you expose yourself to a broader range of people.

What life lesson have you learned that you wish you knew a lot earlier in life?

Nobody cares. [I mean this] in a really positive way. The goofy thing that you love — singing in a choral group with 130 people, maybe it’s going to be embarrassing. Nobody cares. Nobody’s looking at you. Nobody notices that stain on on your tie. Nobody else is thinking about you. They are all too worried about themselves. Do what makes you happy.

Don’t miss some of the fascinating sections I didn’t cover:

  • why Todd majored in deaf studies
  • the art vs science in trading
  • Their new insurance business and some of the most fun or interesting bespoke risks that they underwrite
  • Making markets in prediction markets (they are market makers on Kalshi) and sports
  • The mistakes competitors who take LP money make and the advantage of permanent capital (You will recognize the thinking of If You Make Money Every Day, You’re Not Maximizing)
  • Todd won his first night on Jeopardy and lost the second night. The betting strategy for the second night was trickier. Tune in to find out how that went and also why he answered the Jeopardy question with his roomate’s name.

Select excerpts from Lawrence Yeo’s How To Calm An Anxious Brain

Select excerpts I can refer back to from How to Calm the Anxious Brain by Lawrence Yeo


  • As I researched the structure of the human brain to prepare for this two-part series on anxiety disorders, it became strikingly clear to me why this struggle exists. It’s built right into the anatomy our brains.

  • Robert Sapolsky, professor of biology and neuroscience at Stanford, sums up the entire role of the frontal cortex quite nicely: “the frontal cortex makes you do the harder thing when it’s the right thing to do.” It’s no surprise that it’s the most recently evolved brain region in humans, but is not fully formed in our primate cousins. Interestingly enough, the frontal cortex is the last part of the brain to fully mature and go online – this doesn’t happen until our mid-twenties, which explains a lot of the stupid shit we did in our younger days.

  • since the connecting pathway to the PFC is literally longer, the amygdala gets thalamic input first.

  • Whenever you’re in a fearful situation with high emotional arousal (“I’m scared I will die of a plane crash!”) and you’re able to use a cognitive response to calm it down (“The odds of dying in a plane crash are MUCH lower than if I were to get into a car, so it doesn’t make sense to feel this dread”), that’s the ACG allowing you to make that shift between emotion and cognition. The ACG is really important in the gradual unlearning of fear in anxiety disorders, and one of the keys to a healthy ACG is the neurotransmitter serotonin. the simplest way to think about serotonin is to equate it with regulation. It allows for smooth functioning of the anterior cingulate gyrus. The thing about the ACG is that if left unregulated, it has the tendency to spin around wildly, When this happens, emotionally-charged thoughts get caught in this constant loop …This is a prominent feature of people with Generalized Anxiety Disorder, where intense and destructive worry can result from unreasonable thoughts. For example, let’s say you were at work and you emailed a document to your boss that contained a minor error. The reasonable response would be to simply dismiss that error as a minor one and go about your day. However, for someone with intense generalized anxiety, he could think that the error would be a sign of his gross incompetence, leading his boss to fire him, leaving him without a means to support his family, which will ultimately end in destitution and eventual homelessness. As implausible as this sounds, this negative thought can continue to loop around and grow, causing deeply unpleasant cycles of worry and fear that just won’t go away.

  • A healthy level of serotonin in the brain is crucial, and one reliable way to boost it naturally is through consistent exercise…However, just telling Sam to exercise more often is some pretty generic, unhelpful advice. Chances are that if you’re some form of human being, exercise is a good thing for you. Telling an anxiety-ridden person that exercise will make him feel better is just as helpful as telling a college student that studying will be a reliable way to get good grades.

What can I do to feel less anxious in way that lasts?

(1) cognitive behavioral therapy, and(2) exposure therapy.

CBT

His cognitive error constructed the false belief that people always found him boring. Correcting these cognitive errors allows for healthier and more realistic beliefs to take their place. This is the core thesis of cognitive behavioral therapy (abbreviated as “CBT”), which places false beliefs as the origin point for the emotional states of fear and anxiety. According to Aaron Beck, the founder of CBT, if these false beliefs can be properly identified and replaced, then the associated physiological sensations can change, and healthy behavioral shifts can follow accordingly.

CBT requires consistent, rigorous communication between the therapist and patient, and its efficacy relies upon the client’s ability to accurately self-report his situation. This is what is known as an explicit form of treatment, in which the client uses his conscious awareness and verbal reporting of emotional experiences to reappraise and change them. The client will have to consciously use working memory to identify false beliefs, replace them, and report these shifts (both to himself and to the therapist) as he’s making them. Since executive control and conscious processing are the working gears of explicit methods, the area of our brain that is targeted with CBT is that magical sage of ours: the prefrontal cortex (PFC).

What about the nonconscious processes that act as the origin points of fear and anxiety? Those uncomfortable physiological sensations like chest tension, sweating, flushing, etc. that happen before we are aware of them? Or the bombarding of thoughts that happen automatically once a stranger approaches us? What can we do to decrease the likelihood of these automatic reactions from arising in the first place? For that, we will turn to the second form of treatment: exposure therapy.

Exposure therapy

The CS-US association is housed in the amygdala, making it the trigger point for any of these fear responses. The ultimate goal of exposure therapy is to break this CS-US association, which is done through a process called extinction. Extinction happens when repeated exposure to the CS no longer elicits the arrival of the US (this is creatively known as a “CS-no US” memory). For Pavlov’s dog, extinction would occur if the buzzer (CS) was rung repeatedly without any food (US) showing up. The buzzer no longer indicated the arrival of food, so the old CS-US association is replaced by a “CS-no US” memory. As a result, the dog will stop salivating when the buzzer is rung.

For Sam, extinction would occur if repeated social encounters (CS) no longer produced the uncomfortable sensations (US) that would trigger the fear response. Since talking to someone no longer caused his heart rate to elevate and his face to flush, the emotions of fear and anxiety would have no reason to arise. While progress for cognitive behavioral therapy is determined by the client’s self-reporting of fear and anxiety, the efficacy of exposure therapy is determined by an actual reduction of physiological and behavioral responses. If Sam’s sweating decreases with each social encounter, that’s progress. If his face doesn’t flush as much as it used to, that’s progress.

Exposure therapy tries to close the door to anxiety by halting the rise of the uncomfortable sensations that start it in the first place. This is known as an implicit form of treatment, where we try to alter the nonconscious, automatic responses that are controlled by our nerve-wracked friend, the amygdala. By repeatedly exposing Sam to real and imagined social encounters, he can gradually learn that these situations are not dangerous, and the uncomfortable physiological sensations that would usually accompany them will start fading away. With each exposure, the surge of adrenaline and norepinephrine would lessen, and the CS-US link can be successfully broken

While all this sounds great, what is the neurobiological basis for extinction-based therapies like this? How does the age-old adage of “facing your fears” actually calm down the amygdala and reduce the freak-out capacity of the brain? [Kris: See original post for that as well as a list of specific types of exposure therapies]

While therapy is an incredible resource for the treatment of anxiety, sometimes it’s not easily accessible to the general public. Healthcare systems and stigmas around the world still have a long ways to go in the treatment of mental health disorders, so working with a therapist could be fiscally, culturally, and geographically unreachable for many people. Fortunately, our bodies and minds are equipped with some mechanisms that can help navigate us through anxiety-inducing situations without the usage of formal therapy as well. Let’s briefly touch two of these mechanisms that are inextricably connected with one another.

Breath and meditation

The DMN is what is active when you are lost in thought, or when you’re lost in what neuroscientists call “stimulus-independent thought.” Whenever your mind is wandering for no particular reason (scrolling through your social media feeds, daydreaming about a past event, etc.), your default-mode network is active; conversely, when you’re using attention to focus on external goal-oriented tasks, neural activity in the DMN slows down, which helps to induce those beloved experiences of flow states. Although much of the DMN is located in the Land of the Wise, it’s an area that isn’t very insightful a lot of the time. Studies have shown that a wandering mind is largely an unhappy one, and tends to focus obsessively on thoughts about oneself and his relationship with others. The wandering mind tends to conjure up thoughts about one’s past, one’s social standing in relation to others, reflections about one’s emotional status, visions of an imagined future, and all kinds of shit about the past and future. To put it simply, the DMN is the neurobiological epicenter for one’s sense of “self.”

When we are absorbed in mindless thought and are not aware of the states of our minds, the DMN is fully active and our sense of self is in full force. While feeling like you have a “self” and a distinct ego can seem comforting, the reality is that much of humanity’s problems come from the belief that we are the conscious authors of our lives. The feelings of anxiety and fear are no exception to this. Anxiety largely stems from an over-identification with the sense of self. Social anxiety’s roots lie in the erroneous beliefs of how others are perceiving your “self,” and generalized anxiety stems from worries about situations that can impact the well-being of your “self.”

It is through the constant belief in one’s distinct selfhood that we can fail to see our lives for what they really are: continuously changing pieces of the present moment.

If you’re scratching your head at this point, it’s totally understandable, as a lot of this stuff can sound pretty esoteric. If this whole “sense of self” section sounds a bit woo-woo to you, I get where you’re coming from, but there have been a number of fMRI imaging studies conducted on experienced meditators that shed some light on this. Daniel Goleman and Richard Davidson, leading researchers in this area, have found that the default-mode networks of seasoned meditators, many of which subscribe to the practice of “no self,” are substantially quieter than average levels. Additionally, studies have shown that the brains of long-term meditators have increased gray matter thickness, which is believed to protect age-related thinning of the cortex. LeDoux hypothesizes that meditation practices centered around “no self” prevents external stimuli from even entering working memory, thus isolating any memories about the self from one’s current experience. As a result, the practitioner is completely immersed in the present moment, as the brain is simply unable to take input from the external world.

Mindfulness practice can be invaluable to those suffering from anxiety disorders, as it allows discomforting physiological sensations to simply be observed for what they are: patterns of energy that ultimately have no real meaning. For Sam (our protagonist with social anxiety disorder), he can acutely feel the texture of his heart rate elevating, take a moment to study its character, experience it fully, then proceed to let it go as yet another appearance in consciousness. The elevated heart rate doesn’t have any particular meaning or lesson to convey; it simply arises and falls like everything else.

There’s a well-known quote attributed to Seneca that reads, “We often suffer more in imagination than in reality.”

Anxiety is the physical and emotional embodiment of that statement, and arises due to an unceremonious union of physiological sensations and erroneous beliefs. Concerns about a misinterpreted past and worries about an imagined future are the kindling for anxiety, and being aware of this can put out the proverbial fire before it even has the chance to start.

As we go on, living our lives in a world full of incessant change, it will be tempting for each successive generation to wonder if theirs is the defining era of fear and anxiety. Fortunately, the very thing that has created this exponential progress is also equipped with the ability to slow it down. The human brain, the product of a turbulent evolutionary process itself, can be used to amplify a false narrative about one’s anxiety, or it can take a moment to realize that this irrational tale can be rewritten.

4 Observations from George Lucas’ Career

I listened to Founder’s podcast episode #345 about the life of George Lucas.

The following is the 4 points I want to save:

A movement coming from the fringe

This excerpts remind me of

  1. Paul Graham’s essay The Power Of The Marginal
  2. The importance of finding the people who inspire you via Bill Gurley’s Running Down A Dream speech

Keep in mind, this is the mid-1960s. There’s not many film schools in the United States. And so this is why Tarantino last week in his book would talk about the movie brats. He said they love movies, they dreamed of movies, and they even received degrees in movies back when that was a dubious major. And Lucas talks about this like it was embarrassing. Other people were like, you’re going to a film school, they didn’t even call it a film school, they call it cinematography school. “Like what the hell is this?” and he says, “I lost a lot of face.”The idea of going into film was a really goofy idea at the time. His dad’s like “there’s no way in hell, I’m playing for art school”. 

That decision changed the trajectory of George Lucas’ life is because that’s when he meets essentially just a collection of filmmakers who are all obsessed with movies, they’re all young, and they wind up helping each other for decades. It’s almost like the island of misfit toys because before this, it says, for many of them, it was the first time they had a click of their own, a gathering place where they could talk about their interest, movies without eye rolling from the other cool kids. For many reality finally began when they entered film school.

Lucas knew that he had found his way. Before he wasn’t sure, obviously in the college he had all these other interests. And he’s like, “Oh, wait, this is it.” I was sort of floundering for something. “And when I finally discovered film, I really fell madly in love with it. I ate it. I slept it 24 hours a day. There was no going back after that.” 

Steven Spielberg describes, he uses the exact same language. This is what Spielberg said, “Making movies grows on you. You can’t shake it. I like directing above all. All I know for sure is I’ve gone too far to back out now. There is no going back.” They both discovered what they’re going to do.

Now this is the fascinating part because this turns into the USC Mafia, Spielberg is part of that, even though he didn’t go to USC. You’re talking about a group of super talented filmmakers and a lot of them come out to California, even though they called the USC Mafia, some of them like Martin Scorsese, Oliver Stone, they went to NYU, Brian De Palma went to Colombia. Francis Ford Coppola was at UCLA, Spielberg is on the lot getting his own curriculum at Universal.

They were all friends who would have a lasting impact on film and culture. This is another example that relationships around the world. You see it over and over again in these books, so important to develop relationships with other people that are just like you and even if you’re — they don’t look at themselves as competitors. They tend to compete, but they also collaborate, but they all need each other because they’re trying to break into a system that is closed.

At this point in history, unless you’re part of a union, unless you already know somebody in the industry, you’re not breaking it even with a film degree. It’s yet another illustration of one of my favorite concepts from Game of Thrones, where they said those on the margins often come to control the center. At this time, Spielberg, Scorsese, De Palma, Coppola, Lucas, they are on the margin.

The center is controlled by these old school conservative studios that are locking all these young people out. It was unheard of to have a director in their 20s. And yet this network that they’re building and the talent that they have for their craft, like those on the margins often come to control the center. They become the center.

Now this is really fascinating because when I had dinner with Charlie Munger, this is the advice that he gave us. He talked about is exactly what him and Buffett did. I think he was 35 when he met Buffett, Buffett was about 28, 29 something like that. Each talked over and over again, the importance of — the advice he gave was like you have to develop relationships with people. He’s like, they were still doing deals. He talked about the fact that they would meet people in their 20s, 30s and 40s, and they would do business and do deals for the rest of their lives. The USC Mafia would regularly hire, fire and conspire with one another on countless projects over the next five decades, putting together a kind of system of their own. Lucas is 23 when he meets Coppola. Coppola is 28. They’re going to be making movies doing deals, starting companies, breaking up, fighting for decades.

It’s really important because at that time, because there is no young directors. There’s no 28-year-old director doing a major movie set. You have to be an independent filmmaker to do that. And so Coppola inspires not just Lucas, he inspires Steven Spielberg too. 

Coppola actually succeeded in getting his hand on the door knob and flinging open the door. And suddenly, there was a crack of light. And you could see that one of us, a film student, without any connections had put one foot in front of the other and actually made the transition from being a film student to being somebody who made a feature film sponsored by one of the studios.

To Steven Spielberg, Coppola was a shining star. Spielberg said, Francis was the first inspiration to a lot of young filmmakers because he broke through before many others. So not only did Coppola proved to Spielberg and Lucas that, “Hey, this is possible.”

But the influence that Coppola had on Lucas too is like, “Listen, you have to learn to write.” At this time, and you’ll see Lucas make this mistake a few times. He tries to outsource the writing. And Coppola was saying, “Hey, what separates just a director to a filmmaker is like you have to — any director, he would tell Lucas like any great director has to know how to put together a screenplay. And so he would repeat to Lucas over and over again like no one’s going to take you seriously unless you write. And that wind up being excellent advice because Lucas forced himself to write Star Wars, which is obviously his entire empire.

I’d be working all day and all night living on chocolate bars and coffee, said Lucas. It was a great life. I had enthusiasm, and I was too busy to get into drugs. Movies where his addiction, we were passionate about movies. “We were always scrambling to get our next fix.” Listen to how they’re describing this. This is how he knew what he’s been doing with their life. Described working as your next fix to get a little film in the camera and shoot something.

Spielberg has said multiple times that George Lucas inspired him and said at the time of his first encounter with Lucas in early 1968, Spielberg’s filmmaking was still more aspiring than actual. And Spielberg talked about this, like no longer did his role models have to be these older, in many cases, deceased filmmakers. They’re actually someone his own age, someone I can actually get to know, compete with and draw inspiration from.

“Surf the wave when it comes”

The next year, the film Easy Rider comes out. It is written and directed by a 32-year-old or a 33-year-old Dennis Hopper. It was not made in Hollywood. It was made on a shoestring budget. They raised $350,000. Why is that important? $350,000 is released in theaters. The film makes $60 million. Easy Rider goes on to be one of the most profitable films ever made.

And so the studio executives see them and they’re like, “Oh, s***”, and this is what they said. The studio smelled money. Why invest millions bank rolling production of an enormous film on a studio backlot when you can simply distribute independently produced films. Suddenly, independent films and independent filmmakers, which is exactly what Lucas and Coppola want to be, were in demand. The studio wanted young talent.

I just said that Charlie Munger talks about  surfing the wave.

Listen to the words that they use to describe this.

Easy Rider had created a tsunami of independent enthusiasm. Coppola decided to ride the wave right into the offices of Warner Bros. Come on, that fit together so perfectly there. So goes with Warner Bros.

This is Coppola who’s like — sometimes I think you might need a guy like this because it’s not like we’re going to make one movie.

He is like, listen, you front us a bunch of money. We’re going to bring you a finished film just like Easy Rider did. We’re not going to do with this once. We’re going to — we have seven films we want to make with you guys. We have seven films we want to make with you guys.

They’re young entrepreneurs, don’t have experience, don’t really know what they’re doing. The movies they’re going to make are going to flop. But what’s fascinating is like they still had an insight into the future. And so it says both Coppola and Lucas predicted a bold high-tech future. Remember, this is 1969, 1970, maybe. And they said movies will eventually be sold like soup. What does that mean? You’ll be able to buy it in cartridges for $3 and play it as you would a record, music record at home. He’s predicting VHS tapes, then DVDs, then Blu-ray and now streaming.

Forgiveness not permission

This is more juvenile delinquent behavior. He says the rules are of no concern to him. I broke them all. He said, “Whenever I broke the rules, I made a good film”, so there wasn’t much that the faculty could do about it.

George Lucas is very resourceful.  He always would find a way to get what he needed in terms of equipment and bodies to put together a crew like sometimes when you film like when you film Star Wars in London later on, they have these like really strict rules for the London like Film Union. You have to start at 8:30. There has to be a tea and I’m not even joking about this. You have to start 8:30, then you have to break for tea at 10 a.m., and then you have to break for an hour lunch at 1:00 and then you need another tea break at 4:00 and then you can’t work past 6. He’s like this is madness.

He didn’t want any kind of restrictions. So they would break into the equipment room to get not only materials that they needed, like an expensive camera, but they would also break into facilities. It says Lucas didn’t want to limit his use of the equipment to the building’s regular hours either. We’d shimmy up the drain spout, cross over the roof, jump into the patio and break into the editing rooms so we could work all weekend. And this idea that you use juvenile delinquent actions to actually be more productive.

Entrepreneurship is problem-solving

Tarantino in his book, he says, the job of a director is to solve problems. Solve problems for your actors. And I read this book by Danny Meyer, the famous restaurateur called Setting the Table. It’s excellent. And he tells a story that I’ve never forgotten. He’s at dinner with Stanley Marcus, who is part of the Neiman Marcus family, the family that controls the Neiman Marcus. He’s a wiser older man, probably, I would guess, 40 years older than Danny at this point. I think Danny’s in like mid-20s, maybe late 20s at this point. And so he’s — they’re having this conversation:

Danny says:

“Opening this new restaurant might be the worst mistake I’ve ever made.”

Stanley set his martini down, look me in the eye and said, so you made a mistake. You need to understand something important and listen to me carefully. The road to success is paved with mistakes well handled. His words remain with me throughout the night. I repeated them over and over to myself and it led to a turning point in the way I approached my business.

Stanley’s a lesson reminded me of something that my grandfather had always told me. He said the definition of business is problems. His philosophy came down to a simple fact of business. Success lies not in the elimination of problems, but in the art of creative, profitable problem solving. The best companies are those that distinguish themselves by solving problems most effectively.

The way I condense that down so I can remember myself, business is problems. Therefore, the best companies are just effective problem-solving machines. The best directors are just effective problem-solving machines.

Lucas has a problem. He’s got an idea in his head. No one can make the special effects. There’s no technology at the time. So what did he do? The solution sometimes to a problem is to found your own company to solve that problem. The solution to this problem that he’s having now is the founding of Industrial Light & Magic.

So it says Lucas would not merely have to produce the visual effects. He would have to develop the technology needed to shoot them in the first place. George was absolutely adamant that he wanted to set up his own shop with his own people. Industrial Light & Magic would then be an official subsidiary of Lucasfilm, born of necessity seeded with his own money and feeding off Lucas’ need to control every aspect of the production.

Industrial Light & Magic would stand as one of the cornerstones of Lucasfilm’s empire, an investment that would set him well on the way to becoming a multibillionaire.

Ron Howard admiringly said:

How many people think of the solution of gaining quality control, improving fiscal responsibility, and stimulating technological innovation is to start their own special effects company. 

5 Takeaways from Kobe and MJ’s Trainer

Tim Grover was Michael Jordan’s trainer for 15 years, and he also trained Kobe Bryant. His book is a collection of stories designed to give a glimpse of the mindset these athletes carried with them.

Link to full Founders episode:  https://www.joincolossus.com/episodes/78531762/senra-340-michael-jordan-and-kobe-bryant

Stop waiting to be told

The most common criticism Grover got was the book doesn’t tell you what to do. And this is what Tim Grover said about that:

“That is 100% accurate. Why would anyone want to be told what to do. The whole point of this book is that in order to be successful, to truly have what you want in your life, you must stop waiting to be told what to do and how to do it. I can’t give you a 10-step process or a checklist. What I am giving you is insight into the mentality of those who have found unparalleled success by trusting their own instincts.”

And so, there’s a very old story that’s very reminiscent of what he’s talking about.

A young man was 21 years old, and he asked Mozart, he said, “Well, how do you write a symphony?”

And Mozart replied that “You’re too young to write a symphony.” And that young man said, “But you were writing symphonies when you were 10 and I am 21.” And Mozart’s response was very much the point that Tim Grover is trying to teach us right in the first chapter. He is like “Yes, but I didn’t go around asking people how to do it.”

There is a price

One of the reasons I would heavily recommend getting the audio book, if you like audio books of Relentless is because he talks about a lot of things in this book that most people kind of omit. You’ll see them in biographies. But this idea, the dark side of Michael Jordan and Kobe’s personality is mentioned a lot in this book.

And so, I just want to go into it a little bit here. He says,

“I understand how they think, how they learn, how they succeed and how they fail. I understand what drives them to be relentless, and it’s not all pretty. If you’re aiming to be the best at what you do, you cannot worry about whether your actions will upset other people or what they’ll think of you. Your strategy is to make everyone else get on your level. You are not going down to theirs. You’re not competing with anyone else ever again. They’re going to have to compete with you.”

And so, that idea that, hey, I’m not going down to your level, you have to rise to mine or you need to leave. It’s something that Kobe and Michael repeat over and over again across decades. It’s something that their teammates mentioned over and over again, it’s something that their competitors mentioned over and over again.

Control over their minds

“You can’t excel at anything before you train your mind. Mental dominance is what ultimately makes you unstoppable.” Michael talked about this in the book Driven from Within. He says, “The mind will play tricks on you. The mind was telling you that you couldn’t go any further. The mind was telling you how much it hurt. The mind was telling you these things to keep you from reaching your goal, but you have to see past that. You have to turn it all off if you’re ever going to get to where you want to be.”

And I don’t think that part can be overlooked because your own mind can be your worst enemy. It can actually stop you from even trying.

Kobe: “The greatest fear we face is ourselves. “

It’s not anything that’s external or anything that’s superficial. I think the greatest fear that you face is yourself because we all have dreams. And it’s very scary sometimes to accept the dream that you have, and it’s scarier still to say, I want that. It’s scary because you’re afraid that if you put your heart and soul into it and then you fail, how are you going to feel about yourself. So being fearless means to put yourself out there and going for it, no matter what, go for it, not for anybody else, but for yourself.”

Jordan’s ability to be present and block everything including the past out

Later in the book it says, if one thing separate Michael from every other player, it was his stunning ability to block out everything and everyone else. He was able to shut out everything except his mission. In the very last episode of the Last Dance it talks about this. It says most people struggle to be present. Most people live in fear because we project the past into the future. Michael is a mystic. He was never anywhere else. His gift was that he was able to be completely present. The big downfall of otherwise gifted players is thinking about failure. He would say, why would I think about missing a shot I haven’t taken yet.

And you see this even after they win the sixth and final Championship in Chicago. They’re having this big celebration. Michael’s in his hotel room with a bunch of reporters. He’s playing the piano. He’s smoking a cigar. He’s having a good time.

And then somebody asked him, “Hey, you got another one in you.” And he just stops.

He goes, “It’s the moment man, it’s the moment. It’s that Zen Buddhism shit. Get in the moment and stay there. Just stay in the moment until next October, and then we’ll know where the hell we are.”

And so, this idea of controlling your mind, controlling your emotions, not panicking, not letting the emotions blur judgment and staying in the present moment is repeated throughout both books.

Mastery and its byproducts

In The Almanack of Naval Ravikant,  Naval said something genius in that book because really talking about like the effect of like the modern age, the effect that we’re living in the age of infinite leverage. And so, it really affects everything, what you’re doing for work, how to do it, how to think about it, really.

It’s the book that I give out as a gift most frequently. In fact, I bought 4 more copies like last week or a week before. But when I get to this point, he’s like, I want somebody to be excellent in one thing. And I think this is going to become even more and more important. And Naval says in that book, “Being at the extreme of your craft is very important in the age of infinite leverage, which is what we live in. The person that is the best in the world gets to do that for everyone.”

To illustrate this point, Tim Grover tells a story where him and Michael Jordan went to — they go and they visit an FBI training facility. And this is an excellent story because the idea behind it can be applied to everything, right? So they show up and it’s a practice range for the most elite sharp shooters in the world, so snipers. There’s one guy out there alone practicing his craft over and over and over again. The target is 400 yards away, 4 football fields. He has to get in his truck, drive to the target, set it up and drive back to where we’re standing. He gets his gun with the scope, takes aim, one shot. Then we get in the truck with him and drive back to the target. He hit it dead f****** center.

Michael asked him how many people use that target range. And he said, “Just me.” He was alone working on this one shot over and over again. So when people in the military need someone who can hit that kind of target, they call him. No one knows what this guy does every day to be this good. People just know that he can deliver results.

Figure out what you do, then do it and do it better than anyone else and then let everything else you do build around that. And that’s something Michael talks about because now obviously, he was one of the greatest if not the greatest basketball player of all time. But if you look at what he’s done in his — he’s one of the best entrepreneurs too.

And his whole point was like his game was his best endorsement. He said, my dedication to the game led to all this other stuff. The fact that he made I guess, like $1 billion or $2 billion selling his NBA team. The fact that he’s got this crazy deal with Nike, that he’s been getting 5% royalty. I think he’s going to make something like $300 million this year.

And that only happens because he figured out what he did, then did it better than anyone else, and he let everything else that he did build around that.

Everything that you want in this life is on the other side of “worse first”.

My takeaways:

It starts with how he was

preoccupied with protecting downside

Imagine you start dating. And your only purpose of dating is not get your heart broken. And you’re going to have one foot in and one foot out. And even if you have good data, it’s not going to be that great because you’re not really in it. But the more likely outcome is you’re going to guarantee the very outcome you’re trying to avoid, which is you’re going to get your heart broken.

He was struggling in his investment life and personal life because he was playing not to lose. When he realized this decides a new strategy:

4 principles

There are four principles, and if you get one of these principles right, you will dramatically improve your life. If you get two or three right, you’ll have this magical incredible life. But if you can run the table on all four, you can have literally an infinite life, you can have almost anything that you want. And you can live with joy and you can have energy, and you can sustain it for decades

1) Do hard things

“no matter what you do, it’s going to hurt”

Well, throughout the course of the rowing season, the day that I’d show up, which would be like September 1st, from that date all the way through March, I would improve my time by 20 seconds roughly. From the first day that was all conditioning, everything we do. So a big part of that would be rowing, stadium stairs, we’re lifting weights, and on and on. It was grueling and it was a lot. But all that stuff I just said would take about six months and only 10 seconds of that 20 would come from that. The other 10 seconds would come in the first two weeks. You’re like what? So what happened in the first two weeks that could save 10 seconds. I’ll tell you what didn’t happen. You didn’t change your cardiovascular fitness you didn’t change your strength, you didn’t change your VO2 max, or your technique, all you changed is your comfort to be uncomfortable. You realize that you could push yourself a lot harder than you thought you could. That’s all that changed, that was half of the gains that would get all year would just be me reminding myself that I had a lot more than I thought I did.

Buddha figured out something 2,800 years ago. The first principle of Buddhism, which is called dukkha, which is that there’s going to be suffering, either way. There’s no easy path, there’s no safe path, there’s no path of ease. There’s no path that’s going to be, that’s going to make everything right. You’re going to suffer either way, I’m sorry to be the one to tell you that.  But I’m 20 years out of school and it’s the truest thing I’m probably going to say today. Life is suffering, and so choose something worth suffering for.

“it gets worse first”

If we want to move forward and reach the next peak, the key is to understand that your life is almost always going to get worse first. Any change that you want to make is almost always going to make things worse at first. So, if you’re in a relationship and you need to have a difficult conversation, that particular night your life is going to get a little worse. But then, you’re going to come out the other end, and it’s going to get better. Or if you need to leave a relationship that you shouldn’t be in in the first place, your life is going to get worse first. If you want to change careers and learn something new, you’re going to go down a learning curve. Your salary is probably going to decrease, you’re not going to be good at your job when you first start, your life’s going to get worse first. If you want to start a new habit, whether it’s taking a cold shower, meditating, or starting to exercise, it’s going to get worse first. And you’re going to follow this pattern, but you need to realize that the thing that’s keeping you there is the first move is always going to be worse. And eventually, what’s going to happen is these downward curves are going to get a lot shallower. Because you know what the biggest part of that curve is? It’s just fear. So the more you put yourself in situations where you do hard things, the shallower those dips are going to get because you’re going to remove that fear, just like I mentioned in the rowing example. I had no fear at 2,000 meters, or at 1,500 meters. Everything that you want in this life is on the other side of “worse first”.

2) Do your thing

Okay, so you’re going to do an expected value calculation, right? But there’s one thing you’re not factoring into that equation, which is you when you’re turned on. I went to this dinner in New York, and it was a bunch of private equity people there. It was ridiculous, this dinner. We went to this restaurant in New York, one of those restaurants that has ice with fish heads in it. You can go up and point to the fish that you want. For the privilege of doing that, you pay four times more for the same fish, but they’re in the ice. Anyway, there was this one guy there, Dave.

Dave is in the same business, in the same role as me, at a competing firm. Dave starts going off, saying, “I just won this deal, you won’t believe this. Here’s what happened, this is what we did on the debt covenants. We didn’t step them down, we had the debt to EBITDA that didn’t step down for two quarters, we’re going to save 50 basis points on our interest. And we used pro forma adjusted trailing 12 months yesterday EBITDA times 365. Therefore we’re getting an extra quarter of return on debt and that’s going to help our…” and he’s going on and on.

And I’m thinking, Dave thinks he’s colonizing Mars, he’s so excited about this. In his head, he’s colonizing Mars and I’m thinking to myself two things. First, Dave is going to kick my ass because I don’t care at all about any of this stuff. And the other thing I realized is that this is what Dave had written his business school essay about. He was living it, he was doing the thing that he wanted to be doing. And you’re not going to win doing someone else’s dream, you can survive for a little while, but you’re not going to win.

3) Do it for decades

This is one that probably a lot of people don’t want to hear. So, I have conversations with many of you and the conversation usually goes something like this: “My roommate’s sister’s friend, Megan, is trading Dogecoin and made $2 million. That could have been me if I was just in the right place at the right time. And her friend Kristen is day trading Bored Ape NFTs and makes $30,000 of passive income and all this stuff, right? And that could have been you if you were just in the right place, but you’re all behind, you’re not there yet, you’re way behind where you should be.”

And I thought that same thing when I was here. When I was here, it was Internet 1.0, B to C, like petfood.com. My classmates all went into that and Dave at that dinner had asked me, although Dave was not a good conversationalist, so he never asked me but had Dave asked me about what I was excited about, I would have talked about building this little label business. I would have talked about the culture we were trying to build at this company. I would have talked about how we punch way above our weight and we hired this person for his attributes and no one thought of this and we pulled him from this public company and then we were putting lean manufacturing in the plan. We’re building a culture where people wanted to stay and spend their lives and we’re training people from high school to be press operators. And Dave would have been like, “Frank thinks he’s freaking changing the world, with this little label business.”

Equation for Returns (compounding)

So, what we didn’t factor in at the time was I was willing to just keep going because I loved it. If you think of the equation for returns, it’s 1 plus r to the n, n is quadratic [Kris: actually it’s exponential, but point taken]. The n is the number of years you compound, that’s the most powerful part of the equation is n. And so, if you think of me, my rate of growth, it almost doesn’t matter. I’m growing every year. In year three, I’m a better CEO than I was in year two, in year five, I’m better than I was in year four. But I’m in year 23, and if you take that r, which is how fast you’re improving, you can work on that r a little bit, executive coaching and writing out your goals, and meditating and trying to work and be good at your job. And now you put a 23 on it, you can be the best in the world, it’s just about how long you willing to do it. That’s the most powerful factor and there is no obstacle that will not yield to you if you’re excited about something for a decade or longer.

4) Write your story

[see the video to appreciate the story about exercise he does with the business coach he randomly happens upon]

You put out the thing in the universe that you want to happen, and the universe responds. What’s really happening? And that sounds like woo-woo, you’re like, “God, here we go. Universe responds.” But what’s really happening? What’s really happening is, you’re putting on blinders to where you want to go. You’re making goals, you’re aligning your day to where you want to go. You’re attracting people who want to go to the same place that you want to go. So it is the universe, but there are actually some mechanics behind it too that make it happen.

[Kris: This reminds me of how Mark Manson hates the term “manifesting” not because it’s fake but because it’s taking a real thing, weaponized confirmation bias, and making it woo woo:

The traditional “law of attraction”. Like The Secret. Manifestation. The idea is to visualize and believe something, and it will happen. It’s not entirely wrong. I addressed this topic in an extensive article on my website years ago. The concept in psychology known as confirmation bias plays a key role….It occurs consistently and the law of attraction leverages this bias in our favor. For instance, if your goal is to become rich, you’ll start noticing opportunities that were always there but went unnoticed because you hadn’t been thinking about your goal.

There’s nothing magical or cosmic about it. It’s a common, well-documented perceptual bias. When used effectively, the law of attraction trains you to use confirmation bias to your advantage. The problem is, it’s often shrouded in cosmic jargon and extends beyond simply thinking about your goal. There’s a crucial distinction between focusing on an external goal and the identity you want to inhabit. If, for example, I decide I want to be seven feet tall and play in the NBA, no amount of thinking will make it real. That’s not success; it’s delusion.

I have several issues with the law of attraction. I’ve been quite critical of it, despite recognizing the grain of sound advice within. It advises to look for the positive in anything that happens to you, which can be helpful but should not be applied indiscriminately. It’s perfectly normal and healthy to feel sadness when tragedy strikes.

[Kris: Notice how calls to be indiscriminately positive backfire by setting impossible expectations. Happiness is the gap between reality and expectations.]

What many attribute to the law of attraction is often just confirmation bias, accountability, and goal setting. When you set a goal, it provides a finish line. Without a clear goal, it’s difficult to measure your actions. For instance, if you want to make a lot of money, define the amount. Once you decide on a figure, you can break it down into monthly targets and figure out the steps needed to get there. The law of attraction isn’t responsible for this. It’s simply setting a goal, breaking it into subtasks, holding yourself accountable, and using confirmation bias. It’s easy to see why people appreciate this concept, but it’s crucial to remember that it requires action. You can’t merely wish for wealth and expect it to materialize.

]

Recap

The biggest obstacle you really have is fear, if you boil it down. Fear is very manipulative and it shows up in all kinds of different ways. It tries to disguise itself. It disguises itself as being practical. “I’m being practical right now.” It disguises itself as, “I’m helping you.” It disguises itself as, “I’m saving you.” And most of all, it disguises itself as, “Not me, not now.”

What I have given you today is the antidote to fear. That’s been my goal. The four things that we talked about are ways that you can tangibly and tactically look fear in the eye throughout your lives and say to fear, “Not today, today I’m going to play big, today I’m going to live this asymmetric life.”

Now is the time to do hard things. There’s something that you fear right now, that’s exactly where you should go. You should be doing that thing. There’s something you’re putting off right now, you should be doing that thing. Everything that you want is on the other side of your worst fear. Now is the time to do your thing.There is suffering, you will suffer. So pick something worth suffering for.

Realize that you are underestimating yourself at your full power when you’re excited about something; that’s not going into your equation. Do it for decades because your excitement for a decade knows no bounds. There is no obstacle that will not yield to you when you’re excited for a decade.

And finally, write your own story. No matter where you’re starting and no matter what role you have after school or where you are right now, it doesn’t matter. You can start today writing your story. Inside of you, you have magic. You have your own life. You have something that’s special for you. And there’s really only one question you need to answer, which is, are you going to give yourself permission to lead that life, to live that life, and to let that out? That’s the question you’re going to answer over and over and over in your life from now on. Are you going to give yourself permission? It’s permission you need.

Insights From John Fio on Invest Like The Best

Patrick O’Shaughnessy interviews John Fio

Link: https://www.joincolossus.com/episodes/86445795/fiorentino-creating-magic-for-consumers?tab=transcript

Patrick’s intro:

My guest today is John Fiorentino. John is a product inventor and entrepreneur who, in the space of a few years, has bootstrapped four products: Gravity Blanket, Moon Pod, Moon Pals and Birthdate Candles, which have collectively sold hundreds of millions of dollars of revenue.

Our conversation is quite different than normal. Alongside his successful brands, John has had a range of life experiences from starting as a Jazz musician to working for Justin Bieber that give him an original world view. I was especially interested in his points around product positioning, creating magic for consumers, not letting yourself become the product and how to build enduring brands. 


The following excerpts are notes I want to save. IT’s important to note that Fio’s insights are derived from his work in consumer brands and he makes no warranty of them applying universally. All emphasis are mine:

When marketing can’t be disentangled from the product

One of my favorite brand stories of all time. Sorry, if I’m butchering the story, but something like this happened, where Coca-Cola had hundreds of thousands of taste testers and they put the same Coca-Cola formula in a bunch of different bottles and cans and cups. And the thing that they realized was that when someone drank the same Coca-Cola formula from a white cup and then they drank that same Coca-Cola formula in a can that had the Coca-Cola logo on it, not only did different parts of their brain lit up, different parts of their brain that was triggered by taste buds lit up.

So positioning that product around, it literally changed the way that your brain experienced the taste. When people say that ideas are not valuable, the idea of getting to this place where you are just flicking someone’s brain 10% to make them imagine something different while they engage with the thing is a completely different product.
And that is competitive. You can compete on that. And if you own that positioning in the consumer’s mind, that is what I would like to call a real moat. Do not underestimate the power of the positioning and the ideas that come around how to position something the right way because, in my opinion, that is the product.

[Kris: Rory Sutherland explains a neurological theory for why this effect:  Prediction combined with Bayesian updating makes more sense as a data architecture than perceiving everything and then forging it into a whole. If this is true, it explains many oddities, like the fact that advertising changes the taste of a product.]

It’s no accident that Slow Productivity embedded is the chewy center of the woo

In history, I think if you look at these paradigm-shifting moments and ideas and creations, inventions and people, the through line is that there is a really fucking weird non-through line. You can’t get there by doing [their] morning routine, you got to go a little deeper than that. And if you look at Leonardo da Vinci, you read about how he used to spend his day, where I read his book, one of the craziest things that stood out to me was like he just spent six months taking notes on how the woodpecker’s tongue worked. I was like, “What? That is what got his attention?” And then the guy who invented Pokémon was just out collecting bugs. And James Cameron was just a truck driver that fell into taking over a movie that was about to fail. And then he just basically fucking invented Terminator. What are the things that are actually driving those people? It’s not some quantifiable thing. It is some undeniable spirit that they have this fearlessness where they are able and comfortable to just follow in a cheesy way. They’re following their heart. And they are so committed to that truth that it leads them down these windy insane paths that, that path actually ends up having these paradigmatic discoveries or inventions. What is the through line there? It is this unbelievable commitment, obsession, transcendent infatuation with, in my opinion, finding something that is true. And I think things that are true aren’t really quantifiable, which is why if you talk to most people and what they’re doing with their day, they’re trying to get money. They’re trying to make a lot of money. That doesn’t really stand the test of time. I don’t think money rules the world. I think this undeniable magic rules the world, and I think the people that are able to tap into that and shape that rule the world, and I think money follows that. Money is not the thing. Money is the measurement of the thing, and we’ve kind of forgotten about that. I call it money worship or number worship. We’ve become obsessed with this idea that truth is quantifiable. The point is not money. The point is to make incredible things for the world that then gets you money. That subtle difference is unbelievably important.

[Kris: This is reminiscent of so much of Cal Newport’s slow productivity ideas]

Products that are pulled not pushed

For 99% of consumer product businesses, if you need an investment, you don’t have a business because all of my businesses have been profitable on day one. On day one, there is enough of a demand for it, where if I show it to 1,000 people, 200 of them are buying it. If you don’t have that metric, you don’t have a business.

And if you can’t convince the consumer that the thing that you’re selling is so compelling that they should wait six months for you to deliver the thing that you are describing, you either don’t have a good product, you can’t describe it well enough or the market doesn’t give a shit. And I can tell that in 10 seconds. And that is something that makes people unbelievably uncomfortable and terrified because again, that’s scary. That is a path that you can’t tell me there is no step-by-step path to get you out of that

[Kris: again here’s Newport — If you feel like you have to rush to compete in something or race in some way, chances are you don’t have a great sustainable competitive advantage.]

The cardinal mistake — forgetting that your cult of personality serves the product not the other way around

Patrick: I want to dig a little bit more on this. Apparent fine line between genius, people able to create these elements of magic, let’s call — let’s stick with that word, and something opposite genius. I think five years ago, if you polled everyone is Kanye a genius, most people would probably say, yes. Now I think probably more people would say, he is a psychopath. He said awful and seems to deeply believe some really terrible things.

And then to invoke a name like P.T. Barnum, for example, who I’m sure was some form of a genius. But normally, if you hear that, it’s someone saying something negative about you, like you’re sort of a con artist. Even people like Elon, there just seems to be this fine line between these magic makers, having history write them one way or the other. Is Disney a con artist or a genius? In what ways is he different from P.T. Barnum, is he different from Elon?

There just seems to be this really delicate line. So maybe talk about that line.

John: There is a hierarchy and a formula that you spiritually have to stay within or you get crucified. My way of describing that is you need an idea, something bigger than yourself. And then you need to be the shepherd of that idea and then the way that you spread that message needs to have a product and then that product goes to an audience.

So this is a very real hierarchy in my mind where it makes a lot of sense where if you start to mess those things up, it either becomes extremely less valuable or it blows up. The cardinal sin where you can get really, really far really, really fast is if you turn yourself into the product, which then makes you the idea. And when you become your product and idea, you get crucified. It’s like a very causative effect formula for human psychology. You see the scapegoat thing. You see the story over and over and over again. The crowd turns against the hero and basically crucifies them, you see this. It’s the oldest story of all time.

You can really, really see that play out. And again, do these little tests. Around the world, do you think more people know Elon Musk or the word Tesla? There is a line where he’s crossing where it’s becoming Elon. That’s dangerous. Now you are the thing.

Look at what happened to Trump. If you break that order, you go quick. You can create insane momentum and you become this crazy passionate leader, but if you aren’t doing it for something bigger than yourself, you get sniffed out and you just get crushed. The audience is like, they don’t trust you and they throw you out. Trump got there really, really quick, unbelievably effectively, and then he’s done. Maybe that’s powers that be, maybe that’s the audience, maybe that’s people just got sick of him. My critique on someone that doesn’t get that formula right is like, remind me of the bigger thing. With Trump, it felt like he was for Trump. It didn’t really feel like he was ready to rebuild America and put heart and soul back into this country and unify us. It was like, no, no, no, I’m going to win. And you can see in his tweets, search query of how many times he says me or I or something, which by the way is a leading indicator of serious depression and suicide. If you start saying I and me, it is the highest leading indicator that you’re about to fall into depression.

You put yourself first, you go to hell. It’s just a law that I think exists where if you can use that as a guide of, like, it keeps everyone in check. No one wants to worship a guy. They want to worship a guy that is sacrificing himself for something bigger, and he is showing the world that it’s possible to commit himself to something bigger than yourself, which I think is a very human struggle. It’s a daily quest to find the ways in which to get outside of yourself and help someone else. For whatever reason, a lot of people are fearful of that. They don’t want to do it and they’re scared and it’s vulnerability or whatever, but when you do, you just automatically feel better. You don’t feel necessarily more powerful, which can be unbelievably addicting and intoxicating, but you definitely feel better.

Again, there’s a very real reason why our heart, brain and soul acts that way. And I think that when you tap into that and you understand that there is this real hierarchy of truth and value and you submit to that, now you can be trusted. And don’t get it wrong, consumers, people are unbelievably smart. Unbelievably smart. You cannot trick them.

So what is the role of the creator?

Patrick acknowledges “ it does seem like some of the most successful people have figured out that if the founder or the artist or something is a bit more a part of the story themselves, it’s like a force multiplier. Maybe say like if you’re advising, let’s say, your friends who are starting a company, how would you tell them to build and engage with an audience, if at all?

JohnI think this is where we’re heading to a really interesting time, where it’s like the things that are going to be valuable are the things that you can’t really teach or copy. And that’s just going to be like, how do you teach someone how to be someone’s good, best friend that’s entertaining? I don’t know. Can you?

I would say, if you are an intelligent, personable, funny, charismatic person, that is an unbelievably unique asset that is more and more rare in the world that we are headed in, and you better figure out how to insert yourself into the organism of the company that you’re building because that can be a very valuable force multiplier to get you attention in very unique ways that did not really exist.

But I would say caution, because if you let that get out of whack, you’re going to get killed. I think it’s a very, very delicate balance. And I also think it’s going to be really obvious when people are doing this with the intention of coming up with a formula of how to maximize shareholder value. It’s so obvious when someone starts a podcast because they think it’s going to help them build their audience. It’s just so obvious.

You’re one of the only podcasts I listen to. Why? Because you’re the best interviewer ever. You have a very, very unique ability to interview and make me feel incredibly comfortable to explore these things in my head and ask these very, very poignant questions that’s super rare from an interviewer, which is why you have one of the best podcasts out there. If you try to teach me how to do that, you couldn’t do that.

But because you can do that, I would say, holy shit, quadruple down on that. That will give you — because no one else can do this, this will give you an advantage on being everyone’s best friend that’s the best person at asking questions to the most interesting people. And oh, by the way, I want to meet X, Y and Z. Now you’re in that top 150 range that I was talking about, and you’re going to get that deal flow. [John has an idea he calls Fio’s Number that is similar to Dunbar’s number where you want to be one of the first people think of when they think of X]

Notions of personality typing or a focus on one’s own identity as a unique thing to be cultivated and cherished in contrast to others

I think these archetypal frameworks are interesting to create. I don’t think that they’re interesting to try to put on yourself. I think this idea of self and identity and self-love is similar to practicing schizophrenia. It is not real. It is not healthy, and it does not help you become who you become. You become who you become through movement and motion and following a set of beliefs that puts you in motion. You don’t get to become great by saying, “I’m great. I identify as great.” That’s not for me to decide.

[Kris: McConaughey from an outstanding commencement speech: if we stay in the process, within ourselves, in the joy of the doing, we will never choke at the finish line. Why? Because we aren’t thinking of the finish line, we’re not looking at the clock, we’re not watching ourselves on the Jumbotron performing the very act we are in the middle of. No, we’re in the process, the APPROACH IS THE DESTINATION… and we are NEVER finished. Bo Jackson ran over the goal line, through the end zone and up the tunnel — the greatest snipers and marksmen in the world don’t aim at the target, they aim on the other side of it. We do our best when our destinations are beyond the “measurement,” when our reach continually exceeds our grasp, when we have immortal finish lines. When we do this, the race is never over. The journey has no port. The adventure never ends because we are always on our way. Do this, and let them tap us on the shoulder and say, “hey, you scored.” Let them tell you “You won.” Let them come tell you, “you can go home now.” Let them say “I love you too.” Let them say “thank you.” ]

All of this shit that I’m saying, we’ll look back on this in 20, 30 years, and it will be super clear if I am actually a creator or if I just was a fan boy.

And I won’t be able to convince you. We both will just know. It would just be so obvious. And to me, that is identity. These things that people try to put themselves into, to me, it’s so much pent-up energy in the wrong direction. Don’t look inwards. Look outwards. Serve something bigger than yourself. Do not try to make yourself happy. Try to make someone else happy. And paradoxically, that is what’s going to make you the happiest. [Kris: notice how self-effacing this is]

You’re not going to find love by figuring out what love language you are and who is going to give you that love language. It’s like, no, you find that by making a choice to love someone every single day. I spent the last 5 years or so, as I’m getting to this point in my life, spending tons and tons of time finding people like yourself who I really, really admire who, in my mind, have it all. They have the family, they have the wife, they have success and they’re on this path that doesn’t look like it’s going to end. And they all say very, very similar things. Every 75-year-old billionaire that has their family together just sounds like the exact same person. Which is a contrarian view that I have, which I design and create for is that we are all the exact same. Everyone is the exact same.

We’re all playing the same game. We’re all trying to find love. We’re all trying to eat, and we’re all trying to survive. And when those incentives are at the core of our daily life, everyone plays very, very similar games. Think about how different everyone could act. Everyone is doing the exact same thing. If you’re focusing on these differences, you’re splitting hairs that are just meaningless. And if you start to create, you try to work every day around the core assumption that we are way, way, way more similar, if not almost entirely identical than different, in my opinion, you’re going to have a lot more success.

[Kris: Some related quips about when therapy-talk bleeds into self-defeating snowflakism. 

  • VGR’s take on the strong/weak meme cycle: a world talking itself to death where action would actually help
  • An exchange between the main characters in Tomorrow, Tomorrow, and Tomorrow:
    Sam: “The knowledge and experience we have—it isn’t necessarily that helpful, in a way.”
    Sadie: “It’s so funny you should say this, because if you were one of my students, you’d be wearing your pain like a badge of honor. This generation doesn’t hide anything from anyone. My class talks a lot about their traumas. And how their traumas inform their games. They, honest to God, think their traumas are the most interesting thing about them. I sound like I’m making fun, and I am a little, but I don’t mean to be. They’re so different from us, really. Their standards are higher; they call bullshit on so much of the sexism and racism that I, at least, just lived with. But that’s also made them kind of, well, humorless.
    “If their traumas are the most interesting things about them, how do they get over any of it?” Sam asked. “I don’t think they do. Or maybe they don’t have to, I don’t know.”]

Fio continues:

You’re kind of breaking rule number one: don’t turn yourself into the product. You can’t craft yourself. You can submit to something and serve that, but you can’t craft yourself.

Being in the Hollywood world, there was a lot of these conversations where it was like, the product should be a blanket. When I would try to manage my artist, it was like, I don’t want to make you the product. This is weird. I don’t want to tell you how to do certain things. That’s a weird thing. Like you are becoming the product. And that’s a super, super dangerous thing. And what you’re talking about with these things is like you’re trying to craft yourself. And that is essentially what celebrities do. And just really pay attention to a celebrity. How many people go on these crazy runs where they are that thing for like a year? There’s 50, 60 new names that come up every year where you’re like, oh my God, and then they’re gone. It’s like what is that guy doing? Was that really worth it? Was that the game that he wanted to play? Was that the game he should have played? Or should he have tried to do something a little different, a little bigger?

All these artists that ride these fame waves, they all crash until they come out with a hit again. So if they lose sight of that, it really doesn’t matter what the personality game is they’re playing. If they make a hit, they’re back on top. So does it really matter what games? I think like Frank Ocean and Adele do this really well. They go into a hole for 10 years, and then they just emerge. They drop literally generational-defining music and then they disappear. [Kris: Slow productivity again — this is Newport’s description of Grisham]

It’s like, wow, that dude is a light maker. That dude is making magic. And he’s not the product. He’s cool. I want to hang out with him. I was in L.A. the other day and I had lunch next to him. There was not a bone in my body that would let me go up to him and be like, “Dude, can I get a picture?” Because he was not the thing. He did the honorable thing of making himself smaller to a larger thing he believed, which is the art. And when someone makes that humble decision, I trust them and I treat them like a real person. And if he’s sitting there crafting these archetypal things of what he’s going to do to make himself stand out as a personality, this and this and this, I don’t trust him.

He might get my attention for a year, but I’m not messing with that guy on a 10-year time line until he comes out with a generational-defining hit. And the second he’s capable of doing that, he’s going to realize that the other shit doesn’t matter at all.


A general thought I had when listening to this and many other interviews:

Business is heavily theorized but there seems to be little truth. So much competing information. In a way the things I’m sharing are revealing my bias more than uncovering truth. But I suspect it’s more important to have a point of view and just get to work than hand-wringing about your theories in a wicked domain. It’s a parallel idea to why investing feels like astrology — everything that makes sense gets overbid and the only place to find an edge is where at first it doesn’t appear to make sense. You do and if you can retrofit a why well that’s just a luxury.

A Few Blurbs From Slatestarcodex’s Review of Scout Mindset

Link to the full review

  • Like – a big part of why so many people – the kind of people who would have read Predictably Irrational in 2008 or commented on Overcoming Bias  in 2010 – moved on was because just learning that biases existed didn’t really seem to help much. CFAR wanted to find a way to teach people about biases that actually stuck and improved decision-making. To that end, they ran dozens of workshops over about a decade, testing various techniques and seeing which ones seemed to stick and make a difference. Galef is their co-founder and former president, and Scout Mindset is an attempt to write down what she learned.

  • Thinking clearly is about installing an entirely new mindset in yourself in a bunch of different ways. A Soldier’s goal is to win the argument, much as real soldiers want to win the war. Scout Mindset is the opposite. Even though a Scout is also at war, they want to figure out what’s true.
  • She avoids the “Scouts are better than Soldiers” dichotomy, instead, arguing that both these mindsets have their uses but right now we lean too hard in the direction of Soldier. One justification for Soldier mindset is that you are often very sure which side you want to win. Sometimes this is because the moral and empirical considerations are obvious. Other times it’s something as simple as “you work for this company so you would prefer they beat their competitors.” But even if you know which side you’re supporting, you need an accurate picture of the underlying terrain in order to set your strategy.
  • The book divides learning Scout Mindset into an intellectual half (Part II) and an emotional half (Part III – V). The intellectual half emphasizes probabilistic thinking and thought experiments.

Related:

Takeaways From Cal Newport on the Tim Ferriss podcast

These are the takeaways I wanted to save not a full set of notes.

episode link: https://tim.blog/2024/02/21/cal-newport-slow-productivity/


Techno-selectionism

The way we should think about dealing with technologies in our life, but also in our organizations and our culture. So at multiple scales, it’s hard to predict in advance always the impact a new tool is going to have.

I always give the example of going back and watching Steve Jobs’ keynote speech in 2007 when he’s introducing the iPhone. He doesn’t even get to the internet features until 30 minutes into the speech. I mean, he was just jazzed that your iPod was going to be on the same thing as your phone and you wouldn’t have to switch back and forth. He had no way of predicting eight years later. You’re going to have, for example, a teenage mental health crisis.

Techno-selectionism says, be willing to actually aggressively step backwards. Be willing to say, this looks interesting. Let me try this out. Oh, no. No, no, this is not matching what’s really important to me, so you’re out of here. So being more willing to both experiment and reject after the fact, to move away from these narratives of techno-progressivism that says new technology is good and there are bumps along the way, but you can’t put this genie back in the box. And I say, we can build all sorts of new boxes. And that’s probably the right way to go forward. So in my own life, for example, what I used to be really known for was the fact that I never signed up for traditional social media.

Slow Productivity: The Lost Art of Accomplishment Without Burnout

You can’t be busy and frenetic and bouncing off the walls with 100 projects if you’re obsessed about doing something really well. It’s incompatible with that. Now, doing something really well means you might have some really intense periods when you’re pulling something together, but it is incompatible with being busy. Like Chris Nolan, the director, doesn’t even own a smartphone. He is just, “I’m making Oppenheimer, and that’s what I’m doing for the next three years. And then when I’m done, I’m going to go away for six months and just read. That’s what I do.”

I cannot be on YouTube because when you obsess over quality, two things happen. One, you can’t be busy because that gets in the way of actually getting really good at something. And then two.If you’re doing something really well, that actually gives you the autonomy to push the other junk out of your life and slow down even more. As you get better at something, the more say you get over the way your life unfolds.

The glue is quality first”

Obsess over quality. Yes, because the other two principles are to do fewer things and work at a natural pace. However, if you’re only adhering to those two principles, you’ve set up a sort of adversarial relationship with work in general. It’s as if all you’re thinking about is how to do less. You see work as an adversary. You want more variety in your pacing. You’re just trying to reduce or change work. If that’s all you’re doing, you’re building up a negative attitude towards work, which I believe is one of the dominant reactions to burnout right now in, let’s say, elite culture. It’s an outright rejection of work itself.

Like, any drive to do things is a capitalist construction. And the real thing to do is to do nothing. But that doesn’t last. And the people who are telling you to do this are not doing nothing. They’re striving really hard to ensure that their substacks and books about doing nothing will have a large audience. They’re giving talks on it.

You can’t just focus on the doing less part. You need to obsess over quality. And that’s where you’re able to still fulfill that human drive to create. And that’s where you still build the leverage to control your life and make a living.

“Don’t get started”

[Kris: unconventional advice these days]

It’s really hard to get a good idea. So, take your time. Cultivating a good idea takes years. You have to write, you’re going to dedicate a lot of your life to it. So, don’t get started if you can hold back until you’re really, really sure about it.

People say, “Yeah, but I worry that I’m just going to procrastinate forever.” In some sense, it’s like, well, maybe you’re not meant to do this type of work. But the solution to that is not just to go, tweet this, do this video, or jump over this.

Don’t start using generative AI, or look for a quick thing that you can connect. You shouldn’t want to get started until you can’t help but get started. I think that’s frustrating for a lot of the internet generation because it takes a really long time.

To say I am a writer is something that I think many folks right now, who are in any form of content, would have a lot of trouble saying, “I am X.” They might say, “I’m a YouTuber,” but usually it’s like 15 hyphens. And therein lie many opportunities and also many temptations to be resisted.

It makes me think of Warren Buffett and the phrase, “Don’t just do something, stand there.” This is like, you don’t need to make 100,000 investments. You don’t need to be a day trader. Wait for the fat pitch. Figure out what the fat pitch looks like.

Figure out what your zone of genius is. What is your advantage?

How do you figure out what to work on?

I think you have two options and you can do both. One option is to have a way of test driving ideas. Like with a newsletter or blog to test drive it. And the internet makes that easier than it was 20 years ago.

Then the other option, and this is what I think of as the MFA option, is you have to develop really good taste.

These MFA programs, which are creative writing graduate programs, they don’t really teach you. It’s not instructive. Like here’s how you do paragraphs or here’s techniques you didn’t know, but it increases your taste, meaning your ability to recognize what’s good and what’s not and what’s possible with good things.

Slow productivity

There was no hustle culture. That’s the interesting thing. So when you go back and study people producing things of real value using their brain, they were smart and they were dedicated and they worked really hard, but they didn’t hustle. And they didn’t work 10-hour days, day after day. They didn’t work all out year round. They didn’t push, push, push until this thing was done.

It was a more natural variation. They had less on their plate at the same time, and they glued it all together by obsessing over quality. That’s the Slow Productivity approach. It still produces stuff that you’re really proud of. But it doesn’t burn you out. And it doesn’t leave you in this weird out of sync balance where work is taking up almost all of your time.

Can we take an example, like Newton and the Principia, and apply it to someone who has a 21st-century corporate, semi-remote hybrid work job for a big company? How do we isolate the principle and then make it pragmatic for people who are not traditional knowledge workers, but modern knowledge workers?

If we start with the first principle, “do fewer things,” what this really means for someone with a normal corporate job is to start being very explicit about workload management. Everyone does workload management, but we tend to do it in really inefficient ways because this is left to the individual in the knowledge work context in most jobs.

People send you emails and you just say, yeah, sure, I’ll do it. So what most people do, for example, is they wait until they feel really stressed. And then they say, all right, I have psychological cover to say no. Because I’m so overwhelmed that I feel justified in taking the social capital hit for saying no. It’s a terrible way to manage your workload. So you can be much more explicit about how you manage your workload. Here’s how many slots I have. Oh, I filled them. I mean, this is really sort of four-hour workweek style.

Let’s get in and write the systems for how we manage workload. You could go to a pull-based system instead of a push-based system. You can do reverse to-do list. There’s a lot of things you can do to make sure that the amount of work on your plate doesn’t get too large. In a way that’s fully compatible. Work at a natural pace. While there’s organizational things you can do here so that you’re not at full intensity, but you can also just do this yourself. You can titrate your workload. I go easier in the summer than I do in the rest of the year. And I can do this in a way that my employer doesn’t notice. You know, it’s pretty subtle in like what projects you take on or don’t take on.

Selling the idea of slow productivity in place of pseudo-productivity

We will make more money if we don’t pile 15 things on their plate because more of their time is going to be working on value-producing objectives and not talking about objectives that they don’t have time to actually get to. There’s a useful alignment happening here between clients and entrepreneurs, between employers and employees.

Slow Productivity produces good stuff. It doesn’t just make the workers happier. Doesn’t just make you happier. You produce better stuff. I mean, your company has more profit. Your clients are happier. You can charge more for the services you offer. So it’s not zero sum. It’s more win-win than anything else.

I think people don’t realize how chaotic and haphazard and impromptu the way they’re organizing their work is. How chaotic it really is, right? I don’t think people realize that. What we really did, and by we, I mean like the whole knowledge sector, is in the 1950s, when knowledge work emerged as a major economic sector with really large companies, with a large number of people working in offices.

There wasn’t a clear idea, how do we measure how someone is productive? Because all the ideas about that came from manufacturing and agriculture, and they didn’t apply.

In manufacturing, you could tabulate the labor hours per Model T produced, and in agriculture, you could count bushels produced per acre of land. You had numbers, and so you could say, oh, the assembly line increases this number, so let’s do that instead, or this Norfolk crop rotation method increases the bushels, so let’s do that instead. Knowledge work couldn’t…

Have any number like that because the jobs were more diverse and the organizational systems were autonomous. It’s just up to you to figure out how to organize yourself. There was no organizational-wide way of assigning and monitoring work that you could test and see, what if we change this? Is it better? So what happened was we invented this idea called pseudo-productivity.

Which was we will use activity that’s visible as a proxy for useful effort. So it’s just, hey, you’re doing something that’s good. Doing more things is better than less. That’s where the sort of notion of sort of busyness is good.

Once we got mobile computing, the internet, networks, and email, and I could work on my laptop, you can’t combine that with pseudo-productivity. If more activity is better than less, and you have endless work that you can do in any place, you just spiral into constant work and guilt.

This is the thing I think people miss: they believe they understand what productivity means and have many opinions about it. My argument is that they don’t have a sensible definition. We just have this notion that activity is somehow good, which is clearly not the case, especially for non-entry level knowledge work. Busyness doesn’t produce high value. So, people too often think of something like Slow Productivity as a willingness to trade off economic output for psychological sustainability. They’re willing to trade off making more money for feeling better about themselves. But that’s not what it is. What you’re doing now is crazy. You’re building Model Ts with the lights off. It’s a terrible way to work. It’s like, no, let’s get a real definition of productivity. One that is very sustainable, but also produces good stuff. So, I think people believe they’re stepping away from something that works, but it’s hard. It just gets it done, but it’s hard on me. The thing that we’re doing now doesn’t work. It’s not a sensible way of connecting human brains to add value to information. It’s not a good way of working. So almost any alternative that’s intentional is going to be better than what we have. So we might as well choose one that’s also sustainable and makes us feel good.

What productivity means to Cal

You take a craft that you think is important and that you could be good at and that’s interesting to you. And then you really put on your blinders for a decade. Get really good at something  important. Everything else will work itself out. Like his [Steve Martin] exact quote was, be so good they can’t ignore you. If you do that. Everything else has a way of working out.

A bad sign: when you think you have to rush to compete

If you feel like you have to rush to compete in something or race in some way, chances are you don’t have a great sustainable competitive advantage. I would say almost certainly you don’t have any sustainable competitive advantage. In which case, if you telescope out and just ask yourself, “What does this look like? What does my life look like in one year, three years, five years?” It’s going to break. Something’s going to break. It’s just a question of when it breaks. So you want to preemptively think through how to prevent that.

A specific example I admire is John Grisham. I once compared him to Michael Crichton. I found an old interview of Michael Crichton when he was 27 years old and wrote an essay comparing him to John Grisham. You can see two different approaches to the same job, which is writing popular genre fiction. Crichton was all about being busy. This interview was after The Andromeda Strain had come out. He was full of ambitions. He wanted to direct, do movies, had five books in development, was writing screenplays, and had just moved out to LA. He had a huge plan.

John Grisham, on the other hand, simplified his life as soon as his second book, The Firm, did well. His first book, A Time to Kill, was a flop when it first came out. But he said, “I’m going to write two books. If one of the two works, then I’ll keep doing this.” The Firm did really well. As soon as he had some autonomy, he simplified his life to the point where, at some point in the 2000s, he didn’t need to hire a new assistant when his longtime assistant retired. He said, “No one bothers me. My agent and my editor know how to contact me. I don’t do anything else. I write my book once a year. That’s it. I spend a lot of time doing stuff in my town.” He was a commissioner of the little league and did a lot of things unrelated to work.

He slowed down and said, “I just want to write. That’s all I do. I don’t need to have TV shows. I don’t need to write the screenplays for my books when they get made into things. I don’t need to create a six-part series and direct my own shows. I’m just going to write. I’m getting paid a lot of money. That’s what I want to do. I want to simplify.” So Grisham has always stood out to me. I know a couple of people who know him, and they confirm this. He writes one book a year. You’re not going to hear from him until it’s done. Then you get him for about four weeks, and he’ll do some publicity. But people know who he is. He has the leverage to do nothing.

Embracing slow productivity

Here’s the heuristic that maybe ties a lot of this together. At least for professional stuff, in the end, it’s craft. Craft is what matters. Respecting craft, developing craft, applying craft, finding meaning in craft. Just keep watching on repeat, “Jiro dreams of sushi,” right? Just go back and watch that like once a month, because the more you think about craft, the more I find fulfillment.

Craft is where I impact the world. Craft is where I gain autonomy over my professional life. It can provide for the people I care about and give interesting opportunities in my life. It all comes back down to craft. You slow down. Your timeframes become much longer. Psychologically, you gain so much resilience.

Maybe you couple that, if I’m going to add a second heuristic, with ignoring the internet. It’s a crazy-making machine. Don’t rely on metrics you have to look at on a day-to-day basis.

That’s the two things. Do those two things. It’s night or day. Like what your life is like is night or day.

Intentional productivity involves having a consistent, coherent philosophy for how I’m going to do my work. This philosophy should be more sophisticated than simply being busy. Being busy is often people’s default because it prevents self-recrimination and assures them that they are trying. However, it’s important to be more intentional.

Not everyone needs to be busy all the time. If you’re an investment banker or trying to become a law partner, a very intentional, coherent, and reasonable productivity plan might involve working all the time. This is specifically what works in that world. However, for most people, when they’re intentional, they realize that 80% of what they’re doing is just trying to generate smoke from friction, but there’s no fire. They’re just trying to be busy because they don’t know what else to do. Slowness becomes almost always inevitable once you actually start to be intentional about what you’re really doing. You start to question what really works, what matters, and what doesn’t. Adopt a blend of relentlessness and patience.

Take your time. The good things will wait because it’s uncrowded. They’re really important things. Those domains are typically very, very uncrowded.

A clever insight about writing

Slow Productivity is actually kind of hidden all around us if we pause to look at the people we most respect. All i do as a writer basically is come up with two word terms for things that widely exist and everyone already knows about. “Deep work” already exists i just put a name to it. “Digital minimalism”. I’m just putting a name to a philosophy. That’s my whole secret.

And I’ve said this before to people about pragmatic nonfiction writing. The goal is not to try to teach someone something completely new they didn’t know about. The goal is just to try to help people articulate something they already know deep in their gut is true. They just don’t have a framework or terminology for it. You know, don’t try to convince people of new things. Explain to them what they already know in a way that lets them take better action.

That’s the secret to nonfiction. Prescriptive nonfiction writing is you’re not really teaching people something new.